Americans have limited time to seek as much as $4,480 in data breach settlement

People in the United States still have a short window to file a claim for as much as $4,480 under a data breach settlement.

Baptist Health, a private nonprofit healthcare system with faith-based roots, has been accused of not stopping a breach that took place during a months-long period in 2024.

The settlement says the breach exposed patient details including names, addresses and treatment information.

The plaintiffs argue that the Arkansas-based health system could have avoided the incident with stronger cybersecurity safeguards.

Baptist Health has denied any wrongdoing, but agreed to pay an undisclosed amount rather than continue fighting the case in court.

Court records indicate that about 6,886 people are covered by the settlement.

Under the agreement, eligible claimants may receive up to $400 for documented expenses tied to the breach, including credit-related costs and replacement of identification documents.

They may also claim up to $80 for time spent dealing with the issue, calculated at $20 per hour for as many as four hours.

People who suffered fraud or identity theft because of the breach may be eligible for as much as $4,000.

How class action settlements work

Class action lawsuits let a group of people, known as a class, pursue a case together.

They are usually filed by one person or a small number of people claiming that a company or another organization harmed many others in a similar way.

Once a case is certified as a class action, it applies to all class members, or people who may have similar claims to those who started the lawsuit.

Companies often resolve these cases by settling and offering payments to class members, who typically give up the right to pursue additional legal action if they accept the money.

Such settlements often include a statement that the defendant does not admit wrongdoing. Businesses frequently settle to avoid the expense of further litigation.

Examples that can lead to class actions include pollution, discrimination and false advertising.

To qualify, the losses must be backed up with receipts, bank statements or other financial records.

That means the maximum amount a person can seek from the settlement is $4,480.

All class members are also eligible for two years of one-bureau credit monitoring.

The claim deadline is December 8, 2026, and payments are expected after a final hearing on February 4, 2027.