$5.48M Lawsuit Settlement Reached in Software Vendor Hack

Several Affected HealthEC Healthcare Clients Are Chipping in to Fund Settlement Marianne Kolbasuk McGee (HealthInfoSec) • June 17, 2025

A provider of artificial intelligence-enabled hospital cost-cutting software and several of its healthcare clients agreed to $5.48 million to settle proposed class action litigation involving a 2023 hacking incident affecting 4.6 million individuals.

See Also: SASE and Zero Trust: The Backbone of Integrated Security (eBook)

A U.S. federal judge on June 6 granted preliminary approval of a settlement in a consolidated proposed class action filed in January 2024 against New Jersey-based software vendor HealthEC and several of its customers whose patients were affected by the hack.

Clients named as defendants include Community Health Care Systems, Corewell Health, MD Valuecare and Oakwood Accountable Care Organization, which does business as Beaumont ACO.

Under terms of the $5.48 million agreement, the settlement will be funded by all defendants, with ...