Dothan (WTVY)-- A federal lawsuit claiming a Dothan hospital's negligence resulted in the theft of patients' personal information has been dismissed. Attorneys agreed to a settlement and a judge approved it.
The settlement calls for Flowers Hospital to appropriate $150,000 that will be distributed to those affected by the breach, potentially about 1,200 people.
The class-action lawsuit against Flowers and parent company, Triad of Alabama, claimed the hospital failed to take adequate measures to prevent data breaches.
This case began in 2014 when a deputy sheriff made a traffic stop in Headland and discovered patient files in a car belonging to Karmarian Millender, a Flowers's lab employee.
Federal prosecutors say Millender, who pleaded guilty and served two years in prison, had routinely removed files from the hospital. He then sold the information contained in them to others who used it to file fraudulent income tax returns.
Under the settlement, patients who filed claims will be reimbursed out-of-pocket credit monitoring costs, receive up to four hours in lost wages, and also be paid interest on income tax refunds delayed because of the breach.
A claim up to $5,000 will be considered though the hospital's total liability is capped at $150,000. Most of those affected will receive no more than $250.