DAP Health Settles Data Breach Lawsuit for $1,300,000

DAP Health, a nonprofit community healthcare network based in Southern California, has agreed to settle a class action lawsuit that was filed in response to a cyberattack on its computer systems that exposed sensitive patient data.

Suspicious activity was identified within certain computer systems on or around July 22, 2024. An investigation was launched, which confirmed that an unauthorized third party gained access to an email server and exfiltrated emails and files containing personally identifiable information and protected health information. Data stolen in the incident included names, contact information, dates of birth, Social Security numbers, driver’s license numbers, passport numbers, birth certificate numbers, vehicle license plate and VIN numbers, financial account numbers, Medicare/Medicaid numbers, health insurance information, and a range of medical information.

Notification letters started to be sent to the affected individuals in December 2024, and the breach was reported to the HHS’ Office for Civil Rights as involving the protected health information of 129,048 individuals. The first class action lawsuit in response to the data breach was filed in January 2025, and a second lawsuit was filed in early February 2025. The plaintiffs agreed to work together, and an amended complaint – Donald Crosslin and Matthew Paone v. DAP Health, Inc. was filed in the Superior Court for the State of California for the County of Riverside in June 2025.

The lawsuit alleged that the data breach could have been prevented and was a result of a failure to implement reasonable and appropriate cybersecurity measures. The lawsuit asserted claims for negligence, breach of implied contract, unjust enrichment, and violations of the California Confidentiality of Medical Information Act, California’s Unfair Competition Law, and the California Consumer Privacy Act. DAP Health denies all material allegations, including claims of wrongdoing, fault, and liability.

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Following extensive arm’s-length negotiations, all parties agreed to settle the litigation, with no admission of wrongdoing or liability by the defendant. Under the terms of the settlement, DAP Health has agreed to establish a $1.3 million settlement fund to cover attorneys’ fees and expenses, settlement administration costs, and service awards for the two class representatives. The remainder of the fund will be used to pay for class member benefits.

Class members may submit a claim for reimbursement of documented losses due to the data breach up to a maximum of $5,000 per class member. Regardless of whether a reimbursement claim is submitted, class members may claim a pro rata cash payment. The cash payments are estimated to be $25 per class member. Class members who were California residents on July 22, 2024, can also claim a statutory cash payment of $75. In addition, all class members can submit a claim for two years of complimentary credit monitoring and identity theft protection services.

The deadline for exclusion and objection is September 1, 2026. The deadline for submitting a claim is October 21, 2026. The settlement has received preliminary approval from the court, and the final fairness hearing has been scheduled for October 1, 2026.

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Medusa Ransomware Group Has Attacked 500+ Critical Infrastructure Orgs

CISA, the Department of Health and Human Services (HHS), and the Federal Bureau of Investigation (FBI) have issued an updated cybersecurity advisory about the Medusa ransomware-as-a-service (RaaS) group, which has now claimed more than 500 critical infrastructure victims.

When the cybersecurity advisory was first issued in March 2025, the authorizing agencies determined that Medusa had conducted more than 300 attacks on critical infrastructure entities between 2021 and February 2025. The Medusa ransomware operation emerged in June 2021 and initially operated as a closed ransomware group, with the developers conducting all aspects of the operation, including development, ransomware campaigns, and ransom negotiations.

In early 2023, Medusa morphed into a RaaS operation, using affiliates to conduct attacks for a percentage of the ransom payments. The group also launched a data leak site in 2023 and adopted double extortion tactics, issuing threats to publish stolen data to pressure victims into paying to prevent data leaks as well as to obtain the keys to decrypt data. Since the transformation into a RaaS group, attacks have increased substantially, with the developers and the group’s affiliates conducting attacks. In a little over a year, the group has claimed more than 200 victims in critical infrastructure sectors, compared to 300 in the previous four years.

Affiliates are given various levels of control based on their experience and profitability, with newer and less experienced affiliates having lower levels of trust. For instance, the developers retain control of important aspects of campaigns such as ransom negotiations for newer and less experienced affiliates. The developers recruit initial access brokers (IABs) on cybercriminal forums to provide access to victims’ networks, typically paying between $100 and $1 million to the IAB for access.

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While some RaaS groups have a policy of not attacking healthcare organizations, that is certainly not true of Medusa, which has frequently attacked the healthcare and public health (HPH) sector. While the group is largely believed to operate opportunistically, conducting attacks by focusing on organizations with unpatched, remotely exploitable software vulnerabilities, the high percentage of victims in the HPH sector could indicate targeting of the sector.

Medusa attacks typically start with phishing or the exploitation of unpatched vulnerabilities. The group incorporates exploits for recently announced vulnerabilities into it arsenal. For instance, the CVE-2026-1731 BeyondTrust vulnerability started to be exploited soon after it was announced in February 2026, and the CVE-2025-10035 Fortra GoAnywhere vulnerability was also rapidly exploited. The authoring agencies have observed the group incorporating new exploits within 24 hours of a vulnerability being announced and, in some cases, has started exploiting vulnerabilities in the week prior to an announcement.  No evidence has been found to indicate that the group develops its own exploits; rather, the group is believed to obtain exploits from unknown sources, potentially IABs, exploiting them before victims have the time to patch.

Medusa actors use living-of-the-land techniques, hiding their malicious activities by using legitimate tools to support credential access, data exfiltration, and ransomware deployment. Remote monitoring and management software and remote access services such as Remote Desktop Protocol are also used.

The key actions that HPH sector organizations should take to prevent attacks are to mitigate known vulnerabilities rapidly, ensuring all software, firmware, and operating systems are kept patched and up to date. Networks should be segmented to restrict lateral movement within the network, and network traffic should be filtered to prevent unknown or untrusted origins from accessing remote services on internal systems.

March 13, 2025: Critical Infrastructure Entities Warned About Medusa Ransomware as Victim Count Hits 300

A warning has been issued about the Medusa ransomware-as-a-service (RaaS) group, which has now claimed more than 300 victims in critical infrastructure sectors including healthcare, education, and manufacturing. The group has been active since June 2021 when it started as a closed group, before adopting the RaaS model, where affiliates are recruited to conduct attacks for a percentage of any ransom payments they generate.

Around two years after the group formed, Medusa launched a data leak site where victims are named and stolen data is published if the ransom is not paid. This double extortion method, where the ransom must be paid to obtain the decryption keys and prevent the publication of stolen data, is common among RaaS groups, although in the case of Medusa, its core members have retained control of ransom negotiations.

According to the joint cybersecurity alert from the Cybersecurity and Infrastructure Security Agency (CISA), the Federal Bureau of Investigation (FBI), and the Multi-State Information Sharing and Analysis Center (MS-ISAC), the Medusa developers recruit initial access brokers (IABs) on cybercriminal forums and marketplaces and incentivize them to work solely with Medusa. The authoring agencies have observed affiliates using phishing to obtain credentials to access victims’ networks, as well as exploiting unpatched software vulnerabilities, including last year’s ScreenConnect vulnerability CVE-2024-1709 and the Fortinet EMS SQL injection vulnerability CVE-2023-48788.

Once access to a victim’s network has been gained, Medusa actors use living off the land techniques for user, system, network, and file system enumeration, including legitimate tools such as Advanced IP Scanner, SoftPerfect Network Scanner, PowerShell, Windows Command Prompt, and Ingress Tool Transfer capabilities, as well as Windows Management Instrumentation (WMI) for querying system information.

The authoring agencies have observed Medusa actors using several different PowerShell detection evasion techniques, and they are known to hide their activities by deleting the PowerShell command line history. Endpoint detection and response tools are disabled by using vulnerable or signed drivers to kill processes, and legitimate remote access software is often used to evade detection and assist with lateral movement, along with Remote Desktop Protocol (RDP) and PsExec. Rclone is used to facilitate data exfiltration, and the encryptor is deployed across the network using tools such as Sysinternals PsExec, PDQ Deploy, and BigFix. Windows Defender and other security tools are also disabled on specific targets, backup processes are terminated, and shadow copies are deleted to prevent restoration of encrypted files without paying the ransom. Victims are given 48 hours to make contact to negotiate the ransom payment, with Medusa actors also known to reach out to victims via phone or email. There has been at least one instance where a further ransom demand was issued after the initial payment was made, where the affiliate behind the attack claimed not to have been paid.

The cybersecurity alert shares indicators of Compromise (IOCs), known MITRE ATT&CK tactics and techniques, and recommended mitigations, the most important of which are mitigating known vulnerabilities promptly, segmenting networks to restrict lateral movement, filtering network traffic to prevent unknown or untrusted origins from accessing remote services on internal systems, implementing multifactor authentication for webmail, VPNs, and all accounts that access critical systems, and educating the workforce about phishing identification and avoidance.

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Free Webinar Recording: Inside 250 HIPAA Investigations – What You Need to Know

Free Webinar Inside a HIPAA InvestigationLearn exactly what happens during a HIPAA investigation. Understand where organizations fail so you can avoid government fines and drawn-out investigations.

Based on real experience from over 250 actual OCR investigations.

When it comes to HIPAA investigations, many organizations lean on the hope that they will never be implicated. But, with the rise of ransomware breaches and patient complaints, your organization is much more likely to end up in the crosshairs of the Office for Civil Rights (OCR) than you might expect. 

While you can’t always prevent breaches from occurring, you can control your preparedness for everything that follows when it comes to your HIPAA compliance posture. 

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Join Jake Dewberry, Chief Legal Officer, and Ryan Boudreau, Senior Vice President of Operations from Abyde, as they walk through the details of what an investigation actually looks like and where organizations fail based on their experience in over 250 OCR investigations. They will be sharing real (redacted) examples from past investigations, detailing what the OCR asks for, how to respond safely, and how others failed so you can avoid government fines and drawn-out investigations. 


On Demand Webinar Recording

August 19th Event Ended – Available on Demand 

 

 A recording will be made available to anyone who registers but is unable to attend the live event.


Attendees discover:

  • What triggers an investigation
  • What to do immediately after receiving an investigation letter
  • A breakdown of what the OCR is really asking for, including the most commonly missed requirement
  • Best practices for building your response
  • The possible results of an investigation
  • Real examples of investigation letters

Speakers: 

Jake Dewberry Jake Dewberry – Chief Legal Officer

Jake Dewberry serves as the Chief Legal Officer at Abyde. With over 14 years of experience in the healthcare industry, Jake has worked closely with hospitals and small to mid-sized practices across the country, helping them navigate the evolving world of healthcare technology and regulatory requirements. Jake is also a licensed attorney based in Florida. At Abyde, he wears multiple legal hats — from advising clients during breach responses and audits, to managing the company’s day-to-day legal operations, and staying on top of federal and state regulatory changes impacting HIPAA and OSHA compliance.

 

Ryan BoudreauRyan Boudreau – Senior Vice President of Operations 

Ryan Boudreau is the Senior Vice President of Operations at Abyde, where he leads a team of HIPAA and OSHA compliance experts. A cybersecurity and risk management veteran with nearly 15 years of experience, his team has successfully navigated hundreds of OCR investigations on behalf of their clients.

Abyde is a leader in the compliance software industry, streamlining HIPAA & OSHA requirements for thousands of practices across the United States.


On Demand Webinar Recording

August 19th Event Ended – Available on Demand

 A recording will be made available to anyone who registers but is unable to attend the live event.

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