Continuum Health Alliance, a health management and patient services provider based in Marlton, NJ, has decided to settle a combined class action litigation associated with a data breach in October 2023 that impacted over 377,000 patients of its customer, Consensus Medical Group in Evesham, NJ.
The company discovered strange activity in its computer system on October 19, 2023. The investigation showed unauthorized access occurred from October 18 to October 19, 2023, and the theft of files that contain patient data, such as names and Social Security numbers. The impacted individuals received breach notification letters in April 2024.
Plaintiff Jason Corner filed the first class action litigation on May 3, 2024, then a few other complaints followed. Because the lawsuits had overlapping claims, they were combined into one complaint. On March 14, 2025, counsel filed In re Continuum Health Data Security Incident litigation at Burlington County’s Superior Court of New Jersey Law Division.
The combined class action litigation stated the following claims: unjust enrichment, breach of implied contract, negligence, negligence per se, breach of fiduciary duty, breach of third-party beneficiary contract, and violation of the New Jersey Consumer Fraud Act. The defendants do not admit to all alleged wrongdoing and liability; nonetheless, after mediation, all parties agreed to the material stipulations of a settlement. They considered that a settlement is the best decision. In so doing, they avoided the costs, expenditures, distractions, load, and interruption of continuing lawsuit and the concerns of a trial and associated appeals.
The defendants have decided to do something, including HIPAA training for employees, to enhance safety and modify their business strategies to better safeguard patient information. Claims could be filed to reimburse out-of-pocket expenses prompted by a data breach. A cash payment can be claimed instead as a benefit. Claims to reimburse documented, unreimbursed expenses are capped at $5,000 for each class member. The optional cash payment is likely $75 for each class member, which can be adjusted pro rata to deplete the settlement fund. Additionally, all class members could claim a free membership to a single-bureau medical data monitoring service for 2 years.
The last day to opt out of and to disagree with the settlement is February 17, 2026. Claims can be submitted until March 2, 2026. The schedule of the final fairness hearing is March 16, 2026. More information about the settlement can be accessed on https://continuumhealthdataincidentsettlement.com/
