Peerstar LLC 5,000 Settlement Over Feb 2023 Data Breach Exposing Patient Info
Deadline
Deadline: January 30, 2026
Total Settlement Amount
Total amount allocated for all claims
Individual Payout Range
Estimated amount per eligible claim
Proof of Purchase
All claimants must provide the Notice ID and confirmation code from the settlement notice. To seek reimbursement for monetary losses (including extraordinary losses), claimants must submit reasonable supporting documentation such as receipts, invoices, bank/credit card statements, and similar records showing unreimbursed expenses related to the breach; extraordinary loss claims should also include evidence of reasonable attempts to recover the loss elsewhere (e.g., insurance). Credit monitoring and lost-time claims generally only require selecting the option on the claim form.
Settlement Summary
A cyberattack that began around February 2023 allegedly allowed hackers to access Peerstar LLC systems and potentially expose sensitive data tied to current and former patients. According to notices sent to affected individuals, the information at risk could include identifiers like names, Social Security numbers, dates of birth and government ID numbers, as well as financial details and highly sensitive health and insurance information. Because healthcare-adjacent records are valuable for identity theft and medical fraud, even a “potential exposure” can create long-lasting risk—prompting many organizations to offer credit monitoring while investigations and legal claims play out. The class action was filed on the theory that Peerstar failed to use reasonable cybersecurity safeguards to protect patient information, and that this lapse increased the risk of fraud and forced patients to spend time and money responding (freezing credit, monitoring accounts, addressing misuse). Without admitting wrongdoing, Peerstar agreed to a settlement that offers up to $500 for ordinary documented out-of-pocket losses (including limited reimbursement for time spent dealing with the breach), up to $5,000 for extraordinary documented losses most likely caused by the incident, and two years of credit monitoring with identity theft insurance; eligible claimants must have received a breach notice and submit a claim by Jan. 30, 2026, with a final approval hearing scheduled for Feb. 12, 2026. This case fits a broader wave of data-breach class actions targeting healthcare providers and vendors, where lawsuits often focus less on proving misuse in every individual case and more on whether the company’s security practices were “reasonable” given the sensitivity of medical data. The industry context is shaped by overlapping rules and expectations: HIPAA and the HITECH Act’s Breach Notification Rule require safeguarding protected health information and notifying affected people after certain incidents, while state data-breach laws (and regulators such as the Massachusetts Attorney General, which posts breach reports) add parallel notice and security requirements. Similar settlements across the sector frequently pair modest cash reimbursements with credit monitoring, reflecting both the difficulty of quantifying harm and the growing legal pressure on healthcare organizations to harden systems against increasingly common ransomware and intrusion campaigns.
Entities Involved
Eligibility Requirements
- You are an individual whose personal information was potentially compromised in the Peerstar LLC data breach that began in or around February 2023
- You received a notice from Peerstar LLC stating your information was affected (and you have the Notice ID and confirmation code)
- To receive money for losses, you must have unreimbursed out-of-pocket expenses or qualifying extraordinary losses tied to the breach
- Extraordinary losses must be actual, documented, unreimbursed, and most likely caused by the breach
- Extraordinary losses must have been incurred between Feb. 22, 2023, and the claim deadline and not already covered by other reimbursement categories
- Extraordinary loss claims must show reasonable efforts to recover the loss from other sources (e.g., insurance)
- A claim form must be submitted by Jan. 30, 2026 (and you must not have opted out by Dec. 9, 2025)
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Important Notice About Filing Claims
Submitting false information in a settlement claim is considered perjury and will result in your claim being rejected. Fraudulent claims harm legitimate class members and may result in legal consequences.
If you are unsure about your eligibility for this settlement, please visit the official settlement administrator’s website using the link provided above. Review the eligibility criteria carefully before submitting a claim.
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