MNGI Digestive Health Data Breach Settlement: Payment Status
$2,838,749.62, claims closed in September 2025, and disbursements that were held up by a single objection until March 2026. Where it stands as of 22 August 2026.
Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology
Reviewed by Leonard Goldberg, Editor · Last updated
What Happened
MNGI Digestive Health, a Minnesota gastroenterology practice, suffered a data breach on or about 20 August 2023. The resulting class action alleged negligence, breach of implied contract, unjust enrichment, breach of fiduciary duty and violations of several Minnesota statutes. MNGI agreed to settle for $2,838,749.62 — an unusually precise figure, which is normal in settlements calculated from a defined formula rather than negotiated to a round number.
Case Details
The settlement is administered under the case name MNGI Data Incident Litigation. The procedural point worth understanding: after approval, a single objection can hold up payment for every class member. That is what happened here. On 27 March 2026 the District Court approved a stipulation withdrawing the objection that had been blocking disbursement, and payments were scheduled to begin on 11 May 2026.
Status as of 22 August 2026
What the Settlement Provided
Three benefit types were available to class members who filed in time. Out-of-pocket losses up to $10,000 per class member, for documented costs fairly traceable to the breach — bank fees, credit monitoring already purchased, time spent resolving fraud where the settlement allowed for it. A pro-rata cash payment from the net settlement fund, the size of which depends on how many valid claims were submitted. And two years of medical monitoring through Medical Shield Pro by CyEx. The medical monitoring element is common in healthcare breach settlements, because the exposed data typically includes clinical information that cannot be reissued the way a card number can.
Why the Money Was Late
The Case, Step by Step
- 1
About 20 August 2023 — the breach
The data incident at MNGI Digestive Health occurs, exposing patient information.
- 2
Litigation and settlement
Claims of negligence, breach of implied contract, unjust enrichment, breach of fiduciary duty and Minnesota statutory violations resolve for $2,838,749.62.
- 3
4 September 2025 — claims close
The deadline for class members to submit a claim form. Late submissions are not accepted and receive no award.
- 4
27 March 2026 — objection withdrawn
The District Court approves a stipulation under which the objection blocking disbursement is withdrawn, clearing the way for payment.
- 5
11 May 2026 — payments begin
Disbursements to class members who submitted valid claims commence.
Three Things to Watch
Health data breaches produce durable risk, and settlements attract impostors. These are the specific points.
“Claim your MNGI settlement now”
Claims closed on 4 September 2025. Any invitation to file today does not describe this settlement.
A fee to release your payment
No administrator charges to issue a settlement payment or to check a claim. Any such request is fraud.
Assuming the risk ended with the payout
Medical data does not expire the way a card number does — a diagnosis or an insurance identifier stays useful to a fraudster for years. The two years of monitoring in this settlement is a floor, not a full answer. Free credit freezes at all three bureaus cost nothing and last until you lift them.
Common Questions
Can I still file a claim?
No. The deadline was 4 September 2025 and late submissions are not accepted.
When do payments arrive?
Disbursements to valid claimants began on 11 May 2026, after the objection that had been holding them up was withdrawn on 27 March 2026.
How much is each payment?
It varies by claim type. Documented out-of-pocket losses were payable up to $10,000; everyone else receives a pro-rata share of the net fund, which depends on the number of valid claims. There is no single per-person figure.
Why did one objection delay everyone's money?
Because a class settlement resolves as a whole. Until an objection is decided or withdrawn, distribution generally cannot proceed for any class member. It is the same mechanism as an appeal, and it is why approval dates and payment dates can be a year apart.
What was the medical monitoring?
Two years of service through Medical Shield Pro by CyEx, offered because health data breaches expose clinical and insurance information that cannot simply be reissued.
I filed but have not been paid. What now?
Contact the settlement administrator through the official case website and confirm they hold your current address. Address changes since filing are the most common reason a valid claimant does not receive payment.
Does a settlement mean MNGI admitted fault?
No. Settlements of this kind resolve the litigation without an admission of liability.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.