Behavioral health system Arisa Health in Arkansas consented to pay $1.9 million to resolve a class action lawsuit associated with a cyberattack in March 2024. Threat actors gained access to the Arisa Health system and stole the protected health information (PHI) of over 375,000 patients.
Hackers got access to the Arisa Health system for more or less three weeks from March 1, 2024 to March 18, 2024, and stole files that contain patient names, contact data, medical insurance data, medical backgrounds, diagnoses, Social Security numbers, driver’s license numbers, and certificates of completion for the substance abuse program.
The plaintiffs filed the Rebecca Miller et. al., v. Arisa Health, Inc. class action lawsuit in the Circuit Court of Johnson County, Arkansas in response to the data breach. Allegedly, the cyberattack and data breaches were the consequence of Arisa Health’s negligence, failing to use acceptable and proper cybersecurity procedures to block unauthorized access to very sensitive patient information and also failing in being HIPAA-certified.
Arisa Health rejects all claims and accusations in the lawsuit and states that it did no wrong. Nevertheless, it agreed to a settlement to end the litigation and prevent even more legal expenses and problems and uncertainties of trial. According to the terms of the settlement, Arisa Health will create a settlement fund worth $1,900,000 to pay for litigation costs and expenditures, class representative awards, claims,
attorneys’ fees, and cash payments for class members.
Class members are eligible to receive three years free credit monitoring services and a cash payment, which is approximately $70. Class members could likewise file a claim to refund up to $5,000 per class member for documented out-of-pocket losses and expenditures that is linked to the data breach. Cash payments will be paid pro rata after deducting all claims paid, costs and expenditures from the settlement fund. The amount could be greater or less than $70, subject to the number of legitimate claims filed.
The court has given preliminary approval of the settlement, and the schedule of the final fairness hearing is September 24, 2025. People wanting to object to or exempt themselves from the negotiation can do so until August 12, 2025. Class members can file claims on or before August 27, 2025.
