Yale New Haven Health System Settles Data Breach Case for $18 Million

The Yale New Haven Health System (YNHHS) has agreed to an $18 million settlement fund related to a class action lawsuit stemming from a data breach that compromised patient information. A federal judge granted preliminary approval for the settlement last week, which is designed to address legal fees and administrative expenses for affected individuals.

Although YNHHS denies any liability concerning the breach, it will establish a fund to assist impacted patients. According to the terms outlined in the settlement, those affected can claim reimbursement of up to $5,000 for verified losses or opt for a cash payment of approximately $100.

The health system emphasized its commitment to patient data security. YNHHS spokesperson Carmen Chau stated, “We take our responsibility to safeguard patient information extremely seriously.” She noted that the organization had implemented robust cybersecurity measures consistent with industry standards. Due to prompt actions taken to manage the breach, YNHHS maintained patient care without disruption and ensured that clinical information remained secure.

Details of the Breach and Legal Proceedings

The breach, which occurred in March 2023, involved unauthorized access to sensitive data, including demographic details, social security numbers, patient types, and medical record numbers. However, YNHHS asserted that no electronic medical records, treatment information, or financial data were compromised in the incident.

Following the breach, on April 11, 2023, YNHHS provided a more detailed account of the situation. Shortly thereafter, on April 16, 2023, a class action lawsuit was filed against the health system. The plaintiffs alleged that YNHHS failed to adequately protect their private information and accused the organization of delaying notification to affected patients. In court documents, YNHHS has categorically denied all allegations of wrongdoing.

To avoid the costs and distractions of protracted litigation, YNHHS agreed to the settlement, according to court records. The proposed settlement includes allocation of around $6 million for attorney fees, while select class representatives will receive $2,500 as service awards.

The final approval hearing for the settlement is scheduled for March 3, 2026, in Bridgeport, Connecticut. A federal judge will determine whether the settlement will be finalized. Individuals wanting to file a claim must do so by January 19, 2026.

Future Commitments to Data Security

YNHHS has reiterated its dedication to enhancing data security measures moving forward. Chau stated, “We are continuously updating and enhancing our systems to protect the data we maintain and to help prevent events such as this from occurring in the future.”

With a workforce of over 12,000 employees and approximately 4,500 university and community physicians, YNHHS plays a critical role in healthcare provision in the region. The organization’s commitment to patient safety and data security remains a priority as it navigates the implications of this incident.