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Labcorp will pay 44 states $2,287,455 to resolve an investigation into a 2019 breach at its debt-collection vendor, American Medical Collection Agency (AMCA). The intrusion potentially exposed information belonging to more than 27.5 million people nationwide, including 10.2 million Labcorp patients. The payment goes to the states—not directly to affected patients—and is separate from a $35 million class settlement whose claims deadline has passed.
What happened in the AMCA breach
AMCA, which did business as American Medical Collection Agency, collected small medical debts for laboratories and testing facilities. Labcorp had sent patient information to the company for that work. New York’s attorney general says a hacker accessed AMCA’s internal system from August 1, 2018, through March 30, 2019. The states’ settlement addresses Labcorp’s oversight of the vendor and its handling of patient information.
The New York State Office of the Attorney General reported that the incident potentially involved more than 27.5 million people nationwide, including 10.2 million Labcorp patients. Information that may have been exposed included Social Security numbers, payment-card information, names of medical tests, and diagnostic codes. Potential exposure does not mean that every person’s complete record was accessed or that the information was misused. New York’s announcement provides the scale, and its breach details describe the timeline and information involved.
What the $2.3 million settlement means
Under the multistate agreement announced September 24, 2026, Labcorp will pay the states $2,287,455. The amount is a state settlement payment, not a per-person award or a payment to divide among affected patients. Pennsylvania and Nevada attorneys general provide the settlement amount and payment context.
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The agreement also requires Labcorp to improve its information-security and incident-response programs, limit the patient information it shares with vendors, and establish a dedicated vendor-risk-management capability. Pennsylvania’s attorney general describes the required security reforms.
Specific vendor controls required
- Keep an inventory of contracts with debt collectors and include cybersecurity standards in those contracts.
- Segment data shared with debt collectors, assess and audit vendors, and verify that they comply with requirements.
- Give Labcorp a contractual right to end a relationship when a vendor does not comply.
- Have a third-party assessor review Labcorp’s information-security program, with particular attention to vendor risk.
The practical accountability point is that outsourcing collections does not remove a healthcare organization’s responsibility to oversee how sensitive patient information is handled.
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How this differs from the $35 million class settlement
The state agreement is separate from the federal class-action settlement in In re American Medical Collection Agency, Inc. Customer Data Security Breach Litigation, Case No. 19-md-2904, in the U.S. District Court for the District of New Jersey.
| Proceeding | What it resolves | Who receives the money | What affected people can do now |
|---|---|---|---|
| Multistate agreement | States’ investigation of Labcorp’s handling and oversight of vendor data | The states; Labcorp agreed to pay $2,287,455 | The payment is not a direct patient award |
| Federal class settlement | Class claims relating to the AMCA breach | A $35 million class settlement fund | The claim deadline was September 3, 2026, and has passed |
The official Labcorp settlement administrator page lists the Final Approval Order and Judgment. Its eligibility information and deadline say the claim deadline was September 3, 2026. The page asks whether an individual received diagnostic services and had personal information accessed in the AMCA breach between August 1, 2018, and March 30, 2019; that prompt is not, by itself, a determination that a particular person qualifies.
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Is a class-settlement payment date available?
The official materials establish that the Labcorp class settlement received final approval, but they do not establish whether individual distributions have started or give a dependable payment date. For current distribution information, check the settlement administrator’s latest update rather than relying on an estimated date.
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