A proposed $35 million class action settlement could provide cash payments and medical-information monitoring to people affected by the American Medical Collection Agency, or AMCA, data breach. The settlement involves Laboratory Corporation of America Holdings, better known as Labcorp, which had used AMCA to collect certain unpaid patient accounts. The case is pending in the U.S. District Court for the District of New Jersey as part of multidistrict litigation arising from the breach. The court has not yet granted final approval, and the final fairness hearing is scheduled for August 20, 2026.
What Is the AMCA Data Breach Settlement?
The settlement resolves claims against Labcorp arising from the AMCA cybersecurity incident. AMCA, formally Retrieval-Masters Creditors Bureau Inc., reported that unauthorized parties may have accessed its computer systems between approximately August 1, 2018 and March 30, 2019. Information supplied by Labcorp was contained in the affected systems. Lawsuits later alleged that personal and health-related information had not been adequately protected. Labcorp denies wrongdoing and liability, and the settlement does not represent an admission that the company violated the law.
How Much Is the Settlement?
Labcorp has agreed to create a $35 million settlement fund. The fund will be used for eligible class-member benefits as well as approved administration costs, taxes, service awards, attorneys’ fees and litigation expenses. Because these costs will be paid from the same fund, the amount ultimately distributed to individual claimants will depend in part on the number and type of valid claims submitted.
Who May Be Eligible?
The settlement class generally includes individuals whose personal information Labcorp transmitted to AMCA and whose information was contained in computer systems involved in the 2018-2019 cybersecurity incident. People who received a settlement notice should use the class-member information provided in that notice when filing a claim. Being an AMCA customer or a Labcorp patient by itself does not automatically establish eligibility; the person’s information must fall within the class definition.
What Payments Can Class Members Claim?
Eligible class members have two main cash-payment options. First, they may seek reimbursement of up to $5,000 for documented, unreimbursed out-of-pocket losses that are fairly traceable to the AMCA breach. These losses can include certain identity-theft or fraud costs, professional-service expenses, credit-monitoring expenses and other qualifying costs. The settlement also allows compensation for up to 10 hours of documented time spent addressing fraud, identity theft or misuse of personal information, valued at $25 per hour. Supporting documentation is required for an out-of-pocket-loss claim.
Alternative $50 Cash Payment and Monitoring
Instead of seeking documented losses, a class member may submit a claim for an alternative cash payment currently estimated at $50. The actual amount may increase or decrease depending on the number of valid claims and the money remaining in the net settlement fund. Class members may also elect to receive up to two years of CyEx Medical Shield Pro medical and healthcare information monitoring services. The monitoring benefit is intended to help participants detect possible misuse of medical or health-related information.
What Is the Claim Deadline?
The deadline to submit a claim is September 3, 2026. Online claims must be submitted by that date, while mailed claim forms must be postmarked no later than September 3. The earlier deadline to opt out of or object to the settlement was July 27, 2026. People who remain in the class but do nothing will not receive a cash payment or monitoring services, and they will generally release covered claims against Labcorp if the settlement becomes final.
When Will Payments Be Sent?
Payments will not be issued immediately after a claim is filed. The court is scheduled to hold the final fairness hearing on August 20, 2026 to decide whether the settlement should receive final approval. If approval is granted, payments and monitoring benefits can be distributed only after the settlement becomes effective, including the expiration or resolution of any appeal period. This means there is no guaranteed payment date yet.
Why the AMCA Settlement Matters
The AMCA litigation grew out of a major healthcare-related cybersecurity incident that affected information held by a medical debt collection vendor. The Labcorp agreement is currently the settlement listed on the court-authorized AMCA settlement website, which also notes that additional settlements with other defendants could occur in the future. For people who received notice of the Labcorp settlement, the most important step is to determine eligibility and submit a valid claim before September 3, 2026 if they want cash compensation or monitoring benefits.
