Granite Wellness Centers agreed to a class action lawsuit settlement to resolve claims that it failed to prevent a 2021 data breach that compromised patient information.
The settlement benefits individuals whose personal identifying information or personal health information was accessed or acquired without authorization in the Granite Wellness Centers data breach on Jan. 5, 2021.
Granite Wellness Centers is a nonprofit organization that provides substance use disorder treatment and other wellness services in California. The company has locations in Placer, Nevada and Yuba counties.
According to a class action lawsuit against Granite Wellness Centers, the company failed to implement reasonable cybersecurity measures to protect patient information from a 2021 data breach. The breach allegedly compromised sensitive patient information, such as names, birth dates, contact information, health insurance data, driver’s license numbers, medical histories and even Social Security numbers.
Granite Wellness Centers has not admitted any wrongdoing but agreed to pay an undisclosed sum to resolve the allegations.
Under the terms of the Granite Wellness Centers settlement, class members can receive either a documented loss payment or a pro rata payment.
Documented loss payments are available to class members who experienced out-of-pocket losses as a result of the data breach. These payments can reimburse class members for long-distance phone charges, cell phone minutes, internet usage charges, credit report costs, credit monitoring expenses, identity theft losses and other expenses fairly traceable to the data breach. These payments are capped at $5,000 per class member.
Pro rata payments are available to class members who did not experience out-of-pocket losses or who would prefer a cash payment instead of reimbursement for losses. These payments are estimated to be around $750 per class member but may be higher or lower depending on the number of claims filed with the settlement.
Class members who lived in California at any point between Jan. 5, 2021, and April 27, 2026, can receive an additional statutory payment of $100. These payments will also be subject to pro rata increase or decrease depending on the number of claims filed with the settlement.
The deadline for exclusion and objection is March 28, 2026.
The final approval hearing for the Granite Wellness Centers data breach settlement is scheduled for April 28, 2026.
To receive settlement benefits, class members must submit a valid claim form by April 27, 2026.
