Mission Community Hospital operator Deanco Healthcare, LLC has agreed to a $1,546,409.42 settlement to resolve consolidated class action claims arising from a cyberattack discovered on May 1, 2023 that exposed patient information, including PHI, belonging to 269,547 individuals.
The cyberattack involving unauthorized access started on the same day it Mission Community Hospital discovered it. A forensic investigation determined that although the attack was quickly detected and contained, the threat actor removed files containing patient names, addresses, birth dates, driver’s license numbers, Social Security numbers, and financial account details. The Ransomhouse ransomware group claimed to have conducted the attack and stealing about 2.5 terabytes of data.
The data breach report submitted to the U.S. Department of Health and Human Services Office for Civil Rights indicate that 269,547 individuals were affected. Two class action lawsuits were filed in the Superior Court of California for the County of Los Angeles. The cases were combined into Concepcion et al. v. Deanco Healthcare due to overlapping claims. The consolidated complaint alleged negligence and asserted that the defendant should have prevented the cyberattack and resulting data breach. Deanco Healthcare denied wrongdoing and stated there was no liability. The matter proceeded to settlement to address litigation costs and trial uncertainty.
The settlement agreement establishes a structured distribution process for class members. Eligible individuals include those who received notification from Deanco Healthcare, Mission Community Hospital, or an affiliated entity indicating they were impacted by the incident. Affected individuals are provided a membership in a medical data monitoring service for two years. California residents who were affected at the time of the breach may claim a $100 statutory payment. Class members may also file claims for refund of documented, unreimbursed losses related to the breach, up to $5,000 per individual. A cash payment option is available, funded from remaining settlement funds after other benefits and expenses are paid, with pro rata distribution if claims exceed available funds.
Settlement funds will be reduced by attorneys’ fees and expenses totaling $541,243.30 plus up to $50,000, settlement administration costs of up to $235,400, and service awards of $2,000 for each class representative, totaling $4,000. Remaining funds will be distributed to valid claimants under the settlement terms.
Deadlines set in the settlement include July 13, 2026 for objections and opt-out requests, August 12, 2026 for claim submissions, and September 9, 2026 for the final approval hearing.