On February 21, a federal judge in the Southern District of
Florida approved a $3 million data breach class action settlement agreement between AvMed, Inc. and
plaintiffs. This case arose from a December 2009 theft of two
unencrypted laptops storing the personal information of persons
receiving healthcare coverage through AvMed. This settlement is
significant because, for the first time, plaintiffs in a data
breach case who did not suffer actual damages are permitted to
claim a share of the settlement funds. Whether this approach serves
as a model for future settlements is not clear.
Under the agreement's terms, AvMed will establish a $3
million fund to pay the following:
- Class members whose personal information was actually on the
stolen laptops, but who have not suffered identity theft, can
receive $10 for each year they paid AvMed for health insurance
coverage before the December 2009 incident, up to a maximum
recovery of $30. This relief is intended to
