Capital Health, a New Jersey– and Pennsylvania–based health system, agreed to a $4.5 million settlement after a 2023 cyber incident (Nov. 11–26, 2023) potentially exposed patients’ and consumers’ sensitive data, including Social Security numbers, clinical/health information, and contact details. Health care organizations are frequent targets because medical records can’t be “reset” like passwords and are highly valuable for identity theft and insurance fraud, making even a short breach window potentially serious for large patient populations. The lawsuit, *In re: Capital Health Data Breach Litigation* (D.N.J.), was filed on the theory that the breach—and resulting risk of misuse—stemmed from unreasonable cybersecurity practices and inadequate safeguards, even if the organization denies wrongdoing. The settlement’s structure reflects common data-breach harms: up to $5,000 for documented losses (such as fraud-related expenses or professional fees), a $100 alternative payment for those without documentation, and three years of credit monitoring, with payouts potentially adjusted depending on the number of claims. Beyond compensating affected people, these cases pressure health systems to strengthen security programs, logging/monitoring, employee training, and incident-response readiness because the cost of litigation and remediation can rival the cost of prevention. More broadly, this fits a growing wave of health care breach class actions where plaintiffs argue that exposure of personal and medical data creates concrete risks and out-of-pocket costs, and settlements often trade cash plus monitoring for releases of claims. The industry operates under a dense regulatory backdrop—most notably HIPAA’s Privacy and Security Rules and the HITECH Act’s breach-notification requirements, along with state data-breach notification laws in places like New Jersey and Pennsylvania—which together set expectations for “reasonable” safeguards and timely notice when protected information may have been accessed. Similar suits against hospitals, insurers, and vendors underscore a wider trend: as ransomware and third-party compromises increase, courts and regulators are treating cybersecurity not as an IT issue but as a core patient-safety and compliance obligation.