MHCC Class Action Settlement: How To Claim Up to $5,000 for Data Breach

A major health care company has agreed to pay $14 million over claims that it suffered a data breach that exposed sensitive patient information.

McLaren Health Care Corporation (MHCC), a Michigan-based hospital network, was accused of failing to protect patient data between July 28, 2023, and August 23, 2023, then again between July 17, 2024, and August 3, 2024.

Class members who submit claims could qualify to receive a one-time cash payment of up to $5,000.

Why It Matters

The MHCC class action settlement highlights the growing risks patients face when health care systems are hit by cyberattacks.

Health care data breaches are especially serious because they often involve Social Security numbers, insurance information and detailed medical records. The data is often difficult or impossible for consumers to change once compromised. For affected patients, the fallout can include identity theft, medical fraud, damaged credit and years of monitoring for suspicious activity.

What Is the MHCC Class Action Settlement?

The settlement is a $14 million agreement resolving lawsuits against MHCC over two major data breaches that exposed sensitive personal and medical information.

The lawsuits alleged that MHCC failed to adequately safeguard data, allowing hackers to access information such as names, Social Security numbers, health insurance details and medical records.

MHCC has denied wrongdoing but agreed to the settlement to resolve the claims.

The settlement received preliminary court approval in December and applies to affected people nationwide who had information compromised in the breaches.

"Although MHCC will pay $14 million in the class-action settlement, the company is not admitting fault or wrongdoing," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "These settlements often benefit the corporation by closing the case without liability. Those who can prove harm may receive compensation, but in many cases the payout is pennies on the dollar compared to the damage caused."

Who Qualifies for the Settlement?

You may qualify as a settlement class member if:

• Your personal or protected health information may have been compromised in one of the MHCC data breaches, and
• You received a data breach notification letter from McLaren Health Care or an affiliated entity.

Eligibility is not limited to Michigan residents. According to court filings, millions of people nationwide were affected and are included in the settlement class.

"Victims of data breaches usually end up doing the hard work: monitoring credit, setting fraud alerts and protecting their identity," Thompson said. "The penalty rarely fits the crime, and once your personal data is exposed, the risks and potential costs can last for years."

When Were the Data Breaches?

The settlement covers two separate data breaches involving MHCC's computer systems:

The first occurred between July 28, 2023, and August 23, 2023, and the second from July 17, 2024, through August 3, 2024.

Court documents say unauthorized actors accessed MHCC's network during both periods, potentially exposing sensitive patient and consumer information.

How to Submit a Claim

To receive money or benefits from the settlement, eligible people must submit a claim form through the court‑approved settlement website.

Settlement benefits may include up to $5,000 for documented out‑of‑pocket losses related to the data breaches, such as fraud, identity theft expenses or credit monitoring costs.

There's also a pro‑rated cash payment for class members who do not submit documentation and free credit monitoring and identity protection services available.

Final payment amounts will depend on how many valid claims are submitted and how the settlement fund is allocated.

How Much Money Do People Usually Get in a Class Action Lawsuit?

Class action payouts vary widely and are often much smaller than headline settlement figures suggest.

In many consumer and data breach cases, individual payments range from a few dollars to a few hundred dollars, especially when claims are paid on a pro‑rated basis. Larger payments, sometimes thousands of dollars, typically require proof of specific financial losses tied to the incident.

What People Are Saying

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "While McLaren denies any wrongdoing in the cyberattack, the agreement would also require the company to strengthen its cybersecurity practices moving forward. As we’ve seen in recent years, handling personal information of customers in any industry is becoming more difficult, and failure to do it properly can result in lawsuits worth significant money. It’s a reminder to both companies and their customers of the risks involved and the need for more caution when inputting and maintaining personal data."

Drew Powers, founder of Illinois-based Powers Financial Group, told Newsweek: "Most of us are receiving four or five notifications per year that our data held with a major corporation has been compromised. Unless someone is living 100 percent off-the-grid, then we must assume all of our PII, Personal Identifiable Information, is already in the wrong hands. Any monetary award from a lawsuit is going to pale in comparison with the financial and mental burden of having our identities stolen."

What Happens Next

Powers urged consumers to take note of when they receive notices about data breaches and to monitor their credit in the meantime.

"When you receive a letter or notification of a data breach, it is important to follow the steps to enroll in the provided credit monitoring service, and to remain acutely aware of scam and phishing attempts you are receiving daily via email, phone call, and text," Powers said.

In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center-it’s not “both sides,” it’s sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.

When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.

2026 NEWSWEEK DIGITAL LLC.

This story was originally published March 10, 2026 at 8:20 AM.