Yale New Haven Health System Agrees to $18 Million Settlement

The Yale New Haven Health System (YNHHS) has reached a preliminary agreement to establish an $18 million settlement fund in response to a class action lawsuit regarding a significant data breach. This breach allowed unauthorized access to patients’ personal information, prompting legal action against the health system. A federal judge approved the settlement in principle last week, although YNHHS denies any wrongdoing or liability related to the incident.

According to the settlement, filed on September 10, 2023, patients impacted by the breach can seek reimbursement of up to $5,000 for documented losses or opt for a cash payment of approximately $100. The settlement also covers legal fees and administrative costs associated with the claims.

Carmen Chau, a spokesperson for YNHHS, emphasized the organization’s commitment to safeguarding patient information. “We take our responsibility to safeguard patient information extremely seriously,” Chau stated. YNHHS had implemented thorough cybersecurity protocols in line with industry best practices and acted swiftly to contain the breach, thereby maintaining uninterrupted patient care.

Details of the Breach and Legal Actions

The data breach, which occurred in March 2023, resulted in the theft of sensitive information, including demographic details, social security numbers, and medical record numbers. Nonetheless, YNHHS clarified that its electronic medical records and payment information were not compromised. After the breach became public, on April 11, 2023, YNHHS provided a detailed explanation of the incident, leading to a class action lawsuit filed by plaintiffs on April 16, 2023. They alleged that YNHHS failed to adequately protect their private information and delayed informing affected patients.

Court documents reveal that YNHHS has “denied all liability and all allegations of wrongdoing of any kind.” The health system agreed to the settlement to avoid the costs and distractions associated with prolonged litigation. The final approval hearing for the settlement is set for March 3, 2026, in Bridgeport, Connecticut, where a federal judge will finalize the decision on the settlement’s approval. A deadline of January 19, 2026 has been established for patients to file their claims.

Moving Forward with Enhanced Security Measures

YNHHS has expressed its dedication to improving data security protocols in the wake of this incident. “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,” Chau noted.

With over 12,000 employees and 4,500 university and community physicians, the Yale New Haven Health System remains a significant healthcare provider in the region. The organization aims to restore trust among patients while reinforcing its cybersecurity infrastructure to safeguard against future breaches.