Palomar Health Medical Group Data Breach Settlement — Do You Qualify?

A proposed $3.1 million settlement would resolve claims arising from unauthorized access to or acquisition of private information in Palomar Health Medical Group's computer systems between April 23 and May 5, 2024. Palomar Health Medical Group is the outpatient medical group aligned with the Palomar Health system and provides primary and specialty care in North San Diego County and nearby communities. Patients typically interact with it through physician visits, specialty services, scheduling, billing, and medical records. That relationship matters because the disputed incident involved information maintained in the medical group's systems. The case is Castro et al. v. Arch Health Partners, Inc. d/b/a Palomar Health Medical Group, Case No. 37-2024-00024339-CU-NP-CTL, in the Superior Court of California, County of San Diego. Clarissa Castro, Amber Friedrich, Duncan Meadows, John South, and Nyree Zapata are the class representatives. They brought the action for people with similar alleged injuries. The notice says plaintiffs allege Palomar Health is legally responsible for the incident. Palomar Health denies the claims, wrongdoing, and liability. The court has not decided which side is right. It has authorized notice and preliminarily allowed the settlement process to proceed, but it has not granted final approval or found that Palomar Health violated the law. The settlement class generally includes individuals whose private information was accessed, acquired, disclosed, or compromised in connection with the incident. People sent settlement notice by mail are eligible to submit a claim, subject to the formal class definition and exclusions. A valid claim may request either up to $5,000 for documented incident-related losses or an alternative cash payment estimated at $60. Either cash choice may be combined with two years of single-bureau credit monitoring, identity-fraud insurance, and dark-web monitoring. The $60 figure is only an estimate. Cash awards may increase or decrease on a pro rata basis after claims, administration costs, court-approved fees, and service awards are accounted for. "Pro rata" means the available net fund is divided according to the settlement's rules rather than guaranteeing every claimant a fixed amount. Claims must be submitted online or postmarked by October 22, 2026. The deadline to opt out or object is October 7, 2026. Opting out preserves the ability to pursue the released claims separately but gives up settlement benefits. Remaining in the class, even without filing a claim, means the person will be bound by the release if the settlement becomes final. The final approval hearing is scheduled for November 6, 2026 at 10:30 a.m. No payment is guaranteed, and distribution cannot begin unless the court grants final approval and any appeals are resolved.

A class member may choose one cash path. Cash Payment A reimburses up to $5,000 in reasonable, documented losses related to the incident. The claimant must attest under penalty of perjury and provide records such as receipts, correspondence, or telephone records. A personal statement may explain other records but generally is not enough by itself. Cash Payment B is an estimated $60 alternative that requires no loss documents. The final alternative payment may rise or fall based on valid claims and the net fund. Either cash path may be combined with two years of single-bureau credit monitoring, $1 million in identity-fraud insurance, and dark-web monitoring. Claimants cannot receive both cash choices. The notice also describes security enhancements Palomar Health says it implemented outside the settlement fund, including endpoint detection, backup storage, and added network monitoring.