Kaye-Smith Pays $2 Million to Resolve Class Action Data Breach Lawsuit

The marketing firm and mailing vendor, Kaye-Smith Enterprises, opted to settle a class action lawsuit associated with a cyberattack and data security breach in 2022. Hackers acquired access to its network, deployed ransomware for file encryption, and possibly stole sensitive information.

The following healthcare companies were impacted by the data breach: St. Luke’s Health System, MultiCare Health System, UW Medicine, Geisinger Health System, Delta Dental of Washington, and Seattle Children’s Hospital.

Kaye-Smith Enterprises faced several class action lawsuits associated with the breach. The lawsuits were combined into just one lawsuit, the Smith, et al. v. Kaye-Smith Enterprises Inc. action filed in the U.S. District Court of Oregon. The plaintiffs stated various claims associated with the inability to safeguard sensitive information. Kaye-Smith did not admit to any wrongdoing but decided to negotiate the lawsuit to prevent additional legal expenses and the uncertainty of trial.

A $2 million settlement fund is allocated for the benefits of customers who had their personal data and protected health information (PHI) breached in the attack and the payment of businesses that sustained losses as a result of a data breach.

People who had their sensitive data potentially compromised could file claims for as much as $2,500 to recoup losses, which include time and dollars spent responding to the data breach (about 5 hours valued at $25 an hour), losses to identity theft and fraud, and the expenses of credit monitoring services. Additionally, people could decide to get a $500 cash payment. Irrespective of the choice selected, class members will likewise get free credit monitoring services for 12 months.

Businesses could likewise file claims for losses because of the data breach, Although there is no restriction on the amount that could be claimed, payment will be given after deducting legal costs, attorneys’ fees, consumer claims, and class representative awards. The amount of claims to be paid depends on the remaining settlement fund. Kaye-Smith has additionally consented to upgrade its business and cybersecurity systems i.e. with HIPAA encryption to better safeguard the information it keeps. The last day for filing objections to the settlement is on December 26, 2024. The schedule of the final approval hearing is on January 7, 2025.

If you have received a Notice of Data Incident from Kaye-Smith Enterprises, Inc. or you believe you were affected when Kaye-Smith was subjected to the June 2022 data breach, you may have your rights affected by a proposed class action settlement. A dedicated website has been set up for filing complaints, you can access it here: https://kayesmithsettlement.com/

Image credits: FreyStudios, AdobeStock / ©Defensorum; logo©Kaye-Smith

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John Blacksmith

John Blacksmith is a journalist with several years experience in both print and online publications. John has specialised in Information technology in the healthcare sector and in particular in healthcare data security and privacy. His focus on healthcare data means he has specialist knowledge of the HIPAA regulations. John has a degree in journalism.
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