Arcare has agreed to a $3.9 million class action settlement to resolve claims that it failed to prevent a 2022 data breach that compromised sensitive patient information. The settlement applies to individuals who received a notice from Arcare informing them their private information may have been compromised in a breach that occurred between Jan. 18 and Feb. 24, 2022.
Details of the Arcare data breach settlement
Plaintiffs in the class action alleged Arcare’s cybersecurity measures were inadequate and allowed a 2022 breach to expose sensitive data. The compromised information reportedly included Social Security numbers, driver’s license numbers, financial account information and medical data.
Arcare, a health care provider based in Arkansas, has not admitted any wrongdoing but agreed to pay $3.9 million to resolve the allegations.
Under the terms of the settlement, class members may receive either a cash payment or reimbursement for documented losses. Individuals who experienced losses as a result of the breach can receive up to $5,000 in reimbursement for expenses such as fraudulent charges, identity theft losses, credit monitoring costs and related expenses; these payments are subject to pro rata reductions based on the number of claims filed. Class members who did not experience losses can receive an alternate cash payment of $100, which may also be subject to pro rata reductions.
All class members are eligible for one year of free medical data monitoring provided through the settlement. That service includes one-bureau credit monitoring, medical data monitoring, $1 million in identity theft insurance, real-time alerts and other protections.
Key dates in the settlement process include a deadline for exclusion and objection on Dec. 8, 2026, a final approval hearing scheduled for Jan. 28, 2027, and a claims deadline of Jan. 7, 2027 for submitting a valid claim form to receive settlement benefits.
