Hi-School Pharmacy, a drug store chain in Vancouver, WA has decided to resolve a class action lawsuit associated with a data breach in November 2023. The company will create a $600,000 settlement fund for class members’ claims, attorneys’ fees, and legal expenses.
Hi-School Pharmacy encountered a network problem on November 3, 2024, and reported on November 21, 2023, that hackers got access to its system and possibly acquired the personal data of present and past staff members, which include their names, birth dates, and Social Security numbers. The pharmacy sent personal notification letters to the 17,676 impacted persons in December 2023.
In January 2024, the Shayna Marie Landin v Hi-School Pharmacy Services, LLC; Hi-School Pharmacy, Inc. lawsuit was registered in the U.S. District Court for the Western District of Washington. Allegedly, the pharmacy was negligent because it did not implement acceptable and proper cybersecurity procedures to stop unauthorized access to sensitive information. The plaintiffs claimed that the pharmacy ought to have taken steps to protect against cyberattacks, considering the number of hacking incidents happening at healthcare companies. Instead, the pharmacy failed to secure highly sensitive data. As per the lawsuit, the pharmacy should have implemented cybersecurity measures, including firewalls to prohibit identified malicious IP addresses, strong spam filters, and routine antivirus scans. Employees should be provided frequent security awareness and HIPAA training. If Hi-School Pharmacy had enforced those measures, the data breach might have been avoided. The lawsuit likewise stated claims of unjust enrichment, breach of implied contract, and a breach of the Washington Consumer Protection Act.
Hi-School Pharmacy rejected the allegations and did not admit to any wrongdoing or liability. Nevertheless, the provider opted to resolve the lawsuit to prevent additional legal charges and the threats and uncertainty of ongoing litigation. The terms of the settlement stipulate that each class member can file claims for a refund of recorded, unreimbursed out-of-pocket costs up to as much as $5,000. All class members could likewise claim complimentary credit monitoring and identity theft protection services for 2 years.
The court gave preliminary approval of the settlement in March 2025. The schedule of the final approval hearing is July 31, 2025.