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DATS Treatment Center Breach: Claims Closed, How the $549K Fund Pays Out

The claim window in the Drug and Alcohol Treatment Services data breach settlement closed on September 24, 2026, and for people who filed for the no-receipt alternate payment, the size of that payment now depends on one thing: how much of the $549,000 fund is left after everyone ahead of them in line is paid. The next step is the final approval hearing on November 24, 2026 at the Lackawanna County Courthouse. No payment date has been announced.

Status: Claims closed; awaiting final approval | Claim deadline September 24, 2026 (passed) | Final approval hearing November 24, 2026, 10:30 a.m. | Up to $5,000 documented, or alternate pro rata cash, plus 1 year of medical monitoring


Where Things Stand After the Deadline

Claim forms had to be submitted online, or mailed with a postmark, by September 24, 2026. The windows to opt out or object closed earlier, on August 25, 2026. Class members who did neither are bound by the settlement if the court approves it, releasing their claims against DATS and the other released parties whether or not they filed. Those who did not file will receive no cash and no monitoring.

Filing does not end the process for claimants. An incomplete claim is not simply denied: the administrator, RG/2 Claims Administration, sends a notice of deficiency and allows time to fix it. A documented-loss claim that is rejected and not cured may be treated as a claim for the alternate cash payment instead. Anyone who receives a deficiency notice should respond through the official DATS data breach settlement website within the time it gives.

The Order in Which the Fund Is Spent

DATS is funding a $549,000 non-reversionary settlement fund, meaning no unclaimed money returns to the company once the settlement takes effect. The waterfall runs like this:

1. Off the topAdministration costs, taxes, court-approved attorneys’ fees of up to $183,000 plus litigation costs, and service awards of up to $2,000 for each class representative. What remains is the net settlement fund.
2. Medical monitoringOne year of CyEx Medical Shield medical identity theft protection for each claimant who elected it.
3. Documented losses (Cash Payment A)Up to $5,000 per person for unreimbursed out-of-pocket expenses traceable to the breach.
4. Alternate cash (Cash Payment B)Whatever survives steps 1–3, divided evenly among valid alternate-payment claims.

That is why the settlement never states a dollar figure for the alternate payment: it is the residual, and it cannot be known until claims are counted. The agreement also covers the downside case. If documented-loss claims alone exceed the net fund, those claims are cut pro rata and no alternate cash payments are made.

There is an upside mechanism, too. Money still left over more than 120 days after the first distribution goes out in a second round to alternate-payment claimants who cashed their first check, and rounds repeat until the average payment would fall below a threshold set in the agreement. After that, the remainder goes to a court-approved nonprofit.

What the Documented-Loss Claims Covered

Cash Payment A reimbursed expenses more likely than not traceable to the breach and incurred on or after October 5, 2024: unreimbursed bank fees; long-distance charges; cell phone charges billed by the minute; data charges billed by usage; postage; gasoline for local travel; and fees for credit reports, credit monitoring or identity theft insurance bought between October 2024 and the claim deadline. Claims needed documentation such as credit card or bank statements, invoices, phone records, screenshots or receipts; a self-prepared note alone was not enough.

Why the Monitoring Is Medical

Drug & Alcohol Treatment Service — Drug and Alcohol Treatment Services, Inc. in the case caption — is a treatment provider in Scranton, Pennsylvania. The complaint alleges an unauthorized actor accessed its network on October 5 and 6, 2024, reaching files that held patient records. According to the notice, those files included names, addresses, dates of birth, Social Security numbers, health insurance information, patient account numbers, medication information, diagnosis and treatment information, doctors’ names, and medical claims and billing information.

Substance use treatment records are among the most sensitive data a breach can reach, which is part of why the settlement’s protection benefit is medical identity monitoring rather than the usual credit product. The activation code arrives by email. Claimants who already have monitoring — from the offer DATS made with its breach notice or bought elsewhere — can postpone activation by up to twelve months so the two do not overlap. Follow-on phishing that cites a real diagnosis or prescription is far more convincing than a generic scam, and no administrator ever charges a fee to release a payment.

A Long Road to Settlement

DATS posted notice of the incident on its website on December 5, 2024, while its review was still under way, and mailed written notice to about 22,215 people on or around May 2, 2025. Eight putative class actions followed beginning around May 12, 2025, and were consolidated in September 2025 as Woytach v. Drug and Alcohol Treatment Services, Inc., Case No. 2025-CV-03681, in the Court of Common Pleas of Lackawanna County. The claims include negligence, negligence per se, breach of contract, breach of implied contract, breach of fiduciary duty, breach of confidence and unjust enrichment. DATS denies wrongdoing; the court has not decided who is right, and the parties settled after a full-day private mediation. Kopelowitz Ostrow P.A. and Shub Johns & Holbrook LLP are class counsel. DATS also agreed to maintain data security measures for five years.

Hearing and Payment Timing

The court will hold the final approval hearing on November 24, 2026 at 10:30 a.m. in Courtroom #1, considering fairness, fees and service awards. It may move without further notice. If approved with no objections, the settlement takes effect the day after the order; with objections, 30 days after, or later on appeal. Benefits go out no later than 75 days after final approval or 30 days after the effective date, whichever is later. Claimants who chose PayPal or Venmo are paid electronically; others get a check that must be cashed within 90 days. Our sister site’s DATS data breach settlement page tracks the ruling.

Frequently Asked Questions

Can I still file a claim in the Drug and Alcohol Treatment Services data breach settlement?

No. Claim forms had to be submitted online or postmarked by September 24, 2026. The opt-out and objection deadlines closed August 25, 2026.

How much will the alternate cash payment be?

It has no fixed amount. After fees, costs and service awards, the $549,000 fund pays medical monitoring first, then documented losses, and whatever remains is split evenly among valid alternate-payment claims. If documented losses use up the net fund, no alternate payments are made.

When will payments go out?

No date has been announced. Benefits are distributed no later than 75 days after final approval or 30 days after the effective date, whichever is later. The final approval hearing is November 24, 2026.

What if my claim had a problem?

The administrator sends a notice of deficiency and gives time to cure it. A documented-loss claim that is rejected and not cured may be processed as an alternate cash payment claim instead.

I already have credit monitoring. Can I delay the medical monitoring?

Yes. Claimants who took the monitoring DATS offered with its notice, or bought monitoring elsewhere because of the breach, can postpone activating the CyEx Medical Shield benefit for up to twelve months.

Sources

  • Official settlement website — DATSDataBreachSettlement.com, administered by RG/2 Claims Administration LLC.
  • Notice of Class Action and Proposed Settlement, Settlement Agreement and Release, and Order Granting Preliminary Approval, Woytach v. Drug and Alcohol Treatment Services, Inc., Case No. 2025-CV-03681.
  • Lackawanna County Courts — Court of Common Pleas.
  • OpenClassActions.com — Drug & Alcohol Treatment Services Data Breach Settlement.

Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Drug & Alcohol Treatment Services Data Breach Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.


Legal Disclaimer

This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.

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