$4M ALN Medical Management Data Breach Class Action Settlement, File Your Claim By April 3, 2026 For Up To $5,000
ALN Medical Management agreed to pay $4 million to settle a class action lawsuit over a March 2024 data breach that exposed sensitive personal and medical information of approximately 1.3 million individuals. If you received a breach notification letter, you can file a claim for up to $5,000 in documented losses, a pro rata cash payment, or one year of free medical data monitoring—but you must submit your claim by April 3, 2026.
Between March 18 and March 24, 2024, unauthorized hackers accessed systems hosted by ALN’s third-party IT provider, stealing names, Social Security numbers, driver’s license numbers, financial information, medical records, and health insurance details.
What the $4M Settlement Covers
What Data Was Compromised
The cyberattack compromised files containing highly sensitive information. According to reports filed with state attorneys general, the stolen data included:
Names, Social Security numbers, government-issued ID numbers (driver’s licenses, passports, state ID cards), financial account information (bank account numbers, credit or debit card numbers), medical information and treatment records, and health insurance details including plan IDs and beneficiary identifiers.
ALN initially reported the breach to the HHS Office for Civil Rights using a placeholder figure of 501 individuals. That number was later revised to over 1.8 million, then adjusted downward to 1,323,720 affected individuals after further investigation.
The breach occurred in systems hosted by Long View Systems Corporation, a third-party IT company ALN hired to manage and secure its environment. ALN stores healthcare billing data for medical practices nationwide, including National Spine and Pain in Maryland, Inpatient Physician Associates in Nebraska, Hoag Clinic in California, and Allied Physicians Group in New York.
Who Is Eligible to File a Claim
The settlement class includes all living individuals residing in the United States who received a notice from ALN Medical Management stating their private information may have been impacted in the March 2024 data incident.
You’re eligible if you were a patient at any healthcare provider that used ALN Medical Management for revenue cycle and billing services during the breach period.
The settlement received preliminary court approval on December 5, 2025, in the U.S. District Court for the District of Nebraska (Case No. 4:25-cv-03067-SMB-MDN).
What Compensation You Can Receive
Settlement class members can choose between two payment options:
Cash Payment A – Documented Losses: You can claim up to $5,000 for actual, documented, unreimbursed losses fairly traceable to the data breach. Eligible expenses include credit monitoring costs you paid yourself, bank fees from unauthorized transactions, travel expenses related to breach remediation, lost time (up to 3 hours at $25/hour), identity theft recovery costs, and professional fees (accountant, attorney) for breach-related issues.
You must provide reasonable documentation like receipts, credit card statements, bank statements, or other proof of expenses.
Cash Payment B – Alternative Payment: If you don’t have documented losses or prefer not to gather documentation, you can claim a flat cash payment instead. The amount will be determined on a pro rata basis after all claims are processed. Bloomberg Law estimates this payment could be around $50 per person, though the final amount depends on total claims filed.
Medical Data Monitoring: All settlement class members can elect to receive one year of CyEx’s Medical Shield Complete, which includes one-bureau credit monitoring, medical identity monitoring (tracking healthcare insurance plan IDs, medical records, provider identifiers), real-time alerts for suspicious activity, dark web monitoring, and $1 million in identity theft insurance.
This monitoring service is separate from cash payments—you can request both.
Similar to the $4M Numotion data breach data breach class action settlement, ALN class members can choose between documented loss reimbursement or a simpler pro rata payment.
What You Must Know
The April 3, 2026 Deadline Is Absolute
Your claim form must be submitted online by 11:59 p.m. CT on April 3, 2026, or postmarked by that date if mailing. Late claims will not be accepted.
The court scheduled the final approval hearing for May 15, 2026, at 12:00 p.m. Settlement benefits won’t be distributed until after final approval and any appeals are resolved.
What the Lawsuit Alleged
The consolidated class action lawsuit accused ALN Medical Management of negligence in failing to implement adequate cybersecurity measures, breach of implied contract by not protecting patient data as promised, violations of the California Consumer Privacy Act, and unjust enrichment by profiting from services while failing to protect sensitive information.
ALN and its healthcare clients deny all wrongdoing. They agreed to settle to avoid the expense, risk, and uncertainty of continued litigation—a common position in data breach class action settlements.
The settlement does not include defendant Long View Systems Corporation. That case remains ongoing as separate litigation.
How This Compares to Similar Breaches
The $4 million ALN settlement affecting 1.3 million individuals results in a relatively modest per-person payout for the alternative cash payment.
For context, recent medical data breach settlements include WebTPA ($13.75 million for 2.4 million victims), Numotion ($4 million for 602,000 victims), and Kaiser Permanente ($47.5 million for 13.4 million patients).
Healthcare data breaches have become increasingly common, with medical billing companies particularly vulnerable because they aggregate patient data from multiple providers in centralized systems.
What to Do Next
How to File Your Claim
Visit the official settlement website at ALNSettlement.com. You can file your claim online (recommended for faster processing) or print, complete, and mail the PDF claim form.
If mailing, send to: ALN Medical Management LLC, Data Incident Litigation, c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391.
For questions, call the settlement administrator at 833-754-8507.
What Documentation to Gather
Keep your breach notification letter—it proves you’re part of the settlement class.
If claiming documented losses, gather receipts for credit monitoring services you purchased, bank statements showing fraudulent charges or fees, records of time spent resolving breach-related issues (limit 3 hours), invoices from professionals hired to help with identity theft, travel receipts for breach remediation activities, and any other proof of out-of-pocket expenses directly caused by the breach.
Protect Yourself After a Medical Data Breach
Even if you haven’t experienced identity theft yet, your information is likely circulating on the dark web. Take these protective steps:
Enroll in the free medical data monitoring if you’re eligible. Place fraud alerts or security freezes with all three credit bureaus (Experian, Equifax, TransUnion). Monitor your credit reports regularly for unauthorized accounts. Review medical insurance statements for services you didn’t receive. Change passwords on healthcare portals and enable two-factor authentication. File complaints with the FTC at IdentityTheft.gov if you experience fraud.
Medical identity theft is particularly dangerous because it can corrupt your medical records with someone else’s health information, potentially affecting future treatment.
When to Consult an Attorney
Most class members can file claims without legal representation. The settlement website provides detailed instructions.
However, consider consulting a consumer protection attorney if you’ve suffered substantial documented losses exceeding $5,000, experienced serious medical identity theft or fraud, or are thinking about opting out to pursue individual litigation.
Individual lawsuits may recover higher damages, but they require proving your case and involve significant legal costs and time.
Frequently Asked Questions
Who qualifies for the ALN Medical Management settlement?
All living U.S. residents who received a breach notification from ALN Medical Management about the March 2024 data incident are eligible. You don’t need to prove you suffered identity theft or financial harm—just that your data was exposed in the breach.
How much money will I receive from the settlement?
If you claim documented losses, you can receive up to $5,000 with proper receipts. If you choose the alternative cash payment without documentation, estimates suggest around $50 per person, though the final amount depends on how many claims are filed and will be calculated on a pro rata basis.
What is the claim deadline?
Claims must be submitted online by 11:59 p.m. CT on April 3, 2026, or postmarked by that date if mailing. This deadline is firm with no extensions.
Do I need proof of identity theft to file a claim?
No. All class members can file claims regardless of whether they’ve experienced fraud. You can choose the alternative cash payment that requires no documentation of harm, or claim documented losses with receipts.
Can I get both cash and credit monitoring?
Yes. You can request the one-year medical data monitoring service in addition to either cash payment option. The monitoring is separate from and in addition to any cash compensation.
When will settlement payments be sent?
Payments will be distributed after the court grants final approval on May 15, 2026, and any appeals are resolved. Expect payments approximately 60-90 days after final approval, likely summer 2026.
What if I miss the April 3 deadline?
Late claims will not be accepted. The deadline is absolute. If you’re eligible, file your claim as soon as possible rather than waiting until the deadline approaches.
Last Updated: January 24, 2026
Disclaimer: This article provides general information only and does not constitute legal advice.
CTA: If you received an ALN Medical Management breach notification, don’t wait—file your claim today at ALNSettlement.com before the April 3, 2026 deadline expires.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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