DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

CaptureRx seeks court approval of lawsuit settlement; threatens to consider bankruptcy if not approved (updated)

Posted on February 12, 2022 by Dissent

Updated March 8: According to the TopClassActions website, the court has granted preliminary approval to a $4.75 million settlement between CaptureRX and consumers in six separate class-action lawsuits that all accused the pharmacy giant of negligence after a 2021 data breach:

  • California residents whose information was stored with CaptureRX can submit claims of up to $100 while consumers in other parts of the country will receive $25 cash payouts.
  • As part of the settlement, CaptureRX will also have to “develop, implement and maintain a comprehensive information security program that is reasonably designed to protect the security, integrity and confidentiality” of patients’ personal data.
  • Class counsel says “these benefits represent a highly favorable compromise that balances the merits of plaintiffs’ claims and the likelihood of succeeding at trial and on appeal with the attendant risks. By settling now, the settlement class can take advantage of remedies that would be unavailable or worth substantially less by the time of a litigated final judgment.”

The CaptureRx (NEC Networks) data breach was one of the biggest reported breaches involving a business associate in 2021, affecting dozens of its clients (see also this list) and more than 2.3 million patients.

Now the company is seeking court approval for a $4.75 million settlement of a class action lawsuit, claiming that if the court fails to approve the settlement, the company may have to file for bankruptcy:

Christopher Hotchkiss, CEO of CaptureRx parent company NEC Networks, said in a Friday court filing that it would “strongly consider filing for bankruptcy” if the settlement isn’t finalized. The settlement requires a San Antonio federal judge’s approval.

“CaptureRx is not a large national or multinational company and has limited resources,” he said in the court papers. “CaptureRx faces demands for indemnity from numerous customers…that have and continue to put severe financial strain on the company.”

Read more at San Antonio Express-News.

 

 

Related posts:

  • Updating: CaptureRx incident impacted more than 2.4 million. List of Entities.
  • CaptureRx – Notice of Data Incident (Update 3)
  • Equifax Reaches $1.4 Billion Data Breach Settlement in Consumer Class Action; Also Agrees to Pay $575 Million as Part of Settlement with FTC, CFPB, and States Related to 2017 Data Breach
  • Bits ‘n Pieces
Category: Health DataMalwareSubcontractorU.S.

Post navigation

← FL: Jackson County Hospital District notifying patients of data breach
San Francisco 49ers confirm ransomware attack →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Hacker helped kill FBI sources, witnesses in El Chapo case, according to watchdog report
  • Texas Centers for Infectious Disease Associates Notifies Individuals of Data Breach in 2024
  • Battlefords Union Hospitals notifies patients of employee snooping in their records
  • Alert: Scattered Spider has added North American airline and transportation organizations to their target list
  • Northern Light Health patients affected by security incident at Compumedics; 10 healthcare entities affected
  • Privacy commissioner reviewing reported Ontario Health atHome data breach
  • CMS warns Medicare providers of fraud scheme
  • Ex-student charged with wave of cyber attacks on Sydney uni
  • Detaining Hackers Before the Crime? Tamil Nadu’s Supreme Court Approves Preventive Custody for Cyber Offenders
  • Potential Cyberattack Scrambles Columbia University Computer Systems

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • New Jersey Issues Draft Privacy Regulations: The New
  • Hacker helped kill FBI sources, witnesses in El Chapo case, according to watchdog report
  • Germany Wants Apple, Google to Remove DeepSeek From Their App Stores
  • Supreme Court upholds Texas law requiring age verification on porn sites
  • Justices nix Medicaid ‘right’ to choose doctor, defunding Planned Parenthood in South Carolina
  • European Commission publishes its plan to enable more effective law enforcement access to data
  • Sacred Secrets: The Biblical Case for Privacy and Data Protection

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.