Judge grants preliminary approval for settlement against CFMC

The agreement follows litigation tied to a 2023 cyber incident at Community First Medical Center.

What happened

A federal judge has granted preliminary approval to a one-million-dollar settlement resolving consolidated class action claims against Community First Medical Center related to a July 2023 data breach. Court records show that an unauthorized party accessed the Chicago medical center’s network on July 12, 2023, and viewed or acquired files containing protected health information for roughly 216,000 patients. Fifteen lawsuits with overlapping allegations were combined into a single case in Cook County, Illinois, asserting that the organization failed to maintain reasonable cybersecurity safeguards.

Going deeper

The litigation focused on whether Community First Medical Center implemented appropriate technical and administrative controls to protect patient data. Plaintiffs alleged that weaknesses in security practices allowed unauthorized access to files containing names, contact details, Social Security numbers, and Medicare identifiers. The medical center denied liability but agreed to settle after weighing the costs, time, and uncertainty of continued litigation. The court’s preliminary approval means the settlement terms will be reviewed for fairness while class members are notified and given an opportunity to participate or opt out.

What was said

In court filings, the defendants stated that the settlement does not represent an admission of wrongdoing and was reached to avoid prolonged litigation. Class counsel argued that the agreement provides meaningful relief given the risks of trial and the complexity of proving damages in healthcare data breach cases. The judge noted that preliminary approval reflects an initial finding that the settlement falls within a reasonable range and warrants further consideration after notice and comment periods conclude.

The big picture

The Community First settlement fits into a pattern where healthcare breaches inevitably end up in court, even when providers dispute liability. Lawsuits tied to cyber incidents have become more common as patients and regulators scrutinize how organizations protect sensitive data. In recent months, NextGen Healthcare agreed to a $19.4 million class action settlement tied to a 2023 breach, and Kaiser Permanente reached a $46 million settlement over claims that data shared through its websites and mobile apps exposed member information. While the scale of each case differs, the outcomes point to a shared reality for healthcare organizations: cyber incidents now carry a high likelihood of follow-on litigation, adding legal and financial pressure long after systems are restored.

FAQs

Why does a settlement require preliminary approval?

Courts first determine whether a proposed settlement appears fair and reasonable before allowing notice to be sent to class members and moving toward final approval.

Does preliminary approval mean the case is finished?

No. Class members may object or opt out, and the court must still grant final approval after reviewing feedback and compliance with legal requirements.

What types of data were involved in this incident?

The exposed information included patient identifiers such as names, contact information, Social Security numbers, and Medicare numbers.

Why do healthcare breach cases often settle?

Proving damages can be difficult and costly, and organizations may choose a settlement to reduce uncertainty and limit ongoing legal expenses.

What happens next for affected patients?

Eligible individuals will receive notice explaining their options, including participation in monitoring services or submitting claims, before the court decides on final approval.