Recent dermatology lawsuits fall into four buckets: data breach class actions with open claim deadlines, federal healthcare fraud settlements, a disability discrimination case involving an HIV-positive patient, and malpractice verdicts including a $48 million Georgia judgment. Several of these settlements are still accepting claims from affected patients in 2026.
Data Breach Settlements Accepting Claims Now
If you were a patient at one of these practices, you may be entitled to money. Each settlement has a firm claims deadline.
Anne Arundel Dermatology — $2.4 Million
Hackers had access to Anne Arundel Dermatology’s network from February 14 to May 13, 2025, potentially exposing names, addresses, dates of birth, medical records, and health insurance information for roughly 1.9 million patients. The Maryland-based practice could not confirm whether files were actually viewed or stolen, and no ransomware group claimed responsibility.1SecurityWeek. Anne Arundel Dermatology Data Breach Impacts 1.9 Million People
The class action, In re Anne Arundel Data Breach Litigation (Case No. 1:25-cv-02274), alleged the practice failed to implement reasonable cybersecurity measures in violation of Maryland consumer protection and personal information laws.2ClassAction.org. $2.4M Anne Arundel Dermatology Settlement Anne Arundel denied wrongdoing. Class members can claim up to $5,000 for documented out-of-pocket losses or an estimated $100 cash payment without proof, plus three years of medical data monitoring. The claims deadline is July 8, 2026, with final approval scheduled for July 16, 2026.3Anne Arundel Privacy Settlement. Anne Arundel Dermatology Settlement
Affiliated Dermatologists (New Jersey)
Affiliated Dermatologists & Dermatologic Surgeons, P.A. settled a class action over a data incident discovered March 5, 2024. Class members could claim up to $5,000 for documented losses or a $40 alternative cash payment, plus three years of credit monitoring, with the $40 payments subject to reduction if total valid claims exceeded $1 million. Final approval came March 20, 2026, and payments were scheduled to go out at the end of May 2026.4Affiliated DDS DB Settlement. Affiliated Dermatologists Settlement
Derick Dermatology — Website Tracking Case
A newer type of privacy suit targets not hacks but tracking tools on medical websites. In Jeffries v. Derick Dermatology, PLLC (Case No. CACE-26-003864), filed in Broward County, Florida in March 2026, the plaintiff alleged that pixels, cookies, and analytics code on the practice’s website disclosed private patient information to outside companies in violation of the Federal Wiretap Act.5ClassAction.org. Up to $1M Derick Dermatology Settlement
Derick Dermatology denied the allegations but agreed to a $1 million settlement. Patients who scheduled appointments on the practice’s website between November 21, 2023, and November 27, 2025, can claim up to $12.50 and one year of identity theft protection. The claims deadline is July 21, 2026.6ClaimDepot. Dermatology Pixel Settlement
Forefront Dermatology — $3.75 Million (Closed)
Forefront Dermatology, a Wisconsin-based practice, settled a class action for $3.75 million after a May 2021 ransomware attack attributed to the “Cuba ransomware” group potentially exposed data on more than 2.4 million people. The settlement paid up to $10,000 for documented losses plus reimbursement for lost time and credit monitoring, and required Forefront to implement two-factor authentication and endpoint management for at least two years. Forefront denied wrongdoing.7TechTarget. Forefront Dermatology To Pay $3.75M in Data Breach Settlement
Federal Fraud Cases Against Dermatology Practices
The Department of Justice has been aggressive about billing fraud in dermatology, especially around Mohs micrographic surgery and kickback arrangements tied to practice acquisitions.
Skin Cancer & Cosmetic Dermatology Center (Tennessee)
Dr. John Y. Chung and his practice, which operated 13 clinics in southeast Tennessee and north Georgia, agreed to pay $6.6 million in July 2023 to settle False Claims Act allegations covering 2010 to 2020. The government said the practice billed federal programs for Mohs surgeries as if Dr. Chung personally performed both the surgery and pathology when others actually did at least one part, and improperly circumvented Medicare’s multiple-procedure reduction rules. A whistleblower received $1.32 million, and the practice entered a corporate integrity agreement.8U.S. Department of Justice. Dermatologist Agrees To Pay $6.6 Million
On April 8, 2026, the Tennessee Bureau of Investigation and the FBI conducted raids on multiple Skin Cancer & Cosmetic Dermatology Center offices in Chattanooga, and several locations were shut down. The TBI described it as an ongoing investigation and did not disclose its focus. As of mid-2026, no new charges had been announced.9NewsChannel 9. TBI Joins Federal Probe at Chattanooga Dermatology Office
Forefront Dermatology and Henghold Surgery Center
Separately from the data breach case, Forefront Dermatology and Henghold Surgery Center LLC agreed in July 2025 to pay $847,394 to resolve False Claims Act allegations that they upcoded wound repair procedures after Mohs surgery, billing linear repairs as more expensive flap repairs and smaller flaps as larger ones. A former employee, Dr. Christopher Wolfe, brought the case and received $152,531. Henghold Surgery Center, in the Pensacola, Florida area, closed in 2023.10U.S. Department of Justice. Dermatology Providers Agree To Pay Nearly $850,000
U.S. Dermatology Partners
Oliver Street Dermatology Management LLC, which operates as U.S. Dermatology Partners, agreed to pay about $8.9 million in September 2023 to settle self-reported allegations that between 2013 and 2018 former senior managers inflated the purchase prices offered to 11 acquired dermatology practices in exchange for referral agreements, potentially violating the Anti-Kickback Statute and the Stark Law.11U.S. Department of Justice. Dermatology Management Company To Pay $8.9 Million
Other Fraud Actions
- Port St. Lucie, Florida dermatologist Gary Marder, D.O., pleaded guilty to healthcare fraud and obstruction after submitting roughly $350,000 in false claims and falsified records to a federal grand jury. He was sentenced in 2018 to 36 months in prison, fined $200,000, and permanently surrendered his medical license. A related civil whistleblower case produced an $18 million judgment, satisfied by approximately $6 million in cash and property.12U.S. Department of Justice. Port St. Lucie Dermatologist Sentenced
- A 2018 whistleblower suit against Dimitri Dermatology (Louisiana/Mississippi) alleges misdiagnosing patients to justify unnecessary procedures, billing cosmetic Botox as medically necessary, diluting Botox injections while billing full price, and billing under enrolled physicians’ names for services performed by others. The federal government and Louisiana intervened in September 2024, and the case is in discovery.13iFightForYourRights. Dimitri Dermatology Sued for Medicare and Medicaid Fraud
- Tareen Dermatology in Minnesota settled False Claims Act allegations in June 2024 for $1.63 million over claims that it performed skin grafts where not medically justified and billed for Mohs surgery on days the supervising physician was absent.14iFightForYourRights. Skin Graft Fraud Under the False Claims Act
Refusing to Treat an HIV-Positive Patient
In December 2024, the U.S. Attorney’s Office for the Eastern District of New York announced a settlement with Advanced Dermatology, P.C. after finding that a dermatologist at its Fresh Meadows, Queens office refused to perform a scheduled Mohs surgery on an HIV-positive patient at the appointed time. The physician insisted the patient wait until the end of the day or reschedule for a time when no other patients would be present, citing “concern for the safety of a technician.” The government found this violated Title III of the Americans with Disabilities Act, which prohibits public accommodations from denying services to people with disabilities, including those living with HIV.15U.S. Department of Justice. United States Settles Claim Against New York Dermatology Practice
Advanced Dermatology agreed to pay a $15,000 civil penalty, adopt a non-discrimination policy, and conduct annual staff training on HIV/AIDS and discrimination. The practice did not admit wrongdoing.16Reuters. NY Dermatology Practice Settles Claim It Turned Away HIV-Positive Patient
The $48 Million Waldrop Malpractice Verdict
One of the largest recent dermatology malpractice verdicts came in Waldrop v. Payne, et al. (Case No. 17EV004844) in Fulton County, Georgia. Tony Waldrop, a Vietnam War veteran, sought treatment for skin cancer on his right ear in 2013 from Dr. Joseph R. Payne and Dermatology Associates of Atlanta. An initial Mohs procedure revealed peri-neural invasion, a sign the cancer was aggressive and likely to recur, but Dr. Payne did not refer Waldrop to a radiation oncologist. When Waldrop returned months later with a painful lesion in the same area, the doctor removed it and declared it benign without a biopsy.17Augusta Chronicle. Family Awarded $48 Million in Disfigurement Case
The cancer spread into the parotid gland and facial nerve, ultimately requiring surgery that cost Waldrop most of his right ear, his hearing on that side, and the ability to close his right eye. He was left with permanent facial paralysis, chronic pain, and difficulty eating and speaking. A Fulton County jury awarded $48 million: $32 million for pain and suffering and $16 million to his wife, Patricia Worley, for loss of consortium. With interest, the total judgment reached $56.8 million. The case included a 2020 mistrial and a 2024 defense verdict that was overturned. Waldrop died in 2022 from an unrelated cancer. Defense counsel has indicated potential appeals.18Expert Institute. $48M Verdict in Skin Cancer Negligence
What Dermatology Malpractice Suits Usually Involve
A retrospective analysis of 48 malpractice suits filed against U.S. dermatologists from 2011 to 2022 found that about 54% involved unexpected harm from procedures, most of them elective cosmetic treatments. Laser burns were the most frequent injury, followed by burns from chemical peels. Diagnostic errors, mostly delayed or missed skin cancer diagnoses, made up about a third of cases and produced the most severe outcomes: unnecessary surgeries, amputations, and in three instances, death. Another six cases involved communication failures such as inadequate informed consent.19Dermatology Advisor. Lawsuits Against US Dermatologists Mostly Involve Elective Procedures Plaintiffs prevailed in roughly 40% of the analyzed cases, with payouts ranging from $15,000 for a laser burn to $1.95 million for a delayed melanoma diagnosis, though complete payout data was available for only five cases. The highest-risk profile the study identified was a male provider in solo private practice performing an elective cosmetic procedure on a female patient.20PubMed. Retrospective Analysis of U.S. Dermatology Malpractice Litigation
Why Enforcement Is Intensifying: Private Equity Consolidation
Dermatology has been one of the specialties most heavily targeted by private equity. Between 2012 and 2021, private equity acquisitions of physician practices increased by 600% according to the Center for American Progress, and most individual deals fell below the Hart-Scott-Rodino premerger reporting threshold, letting them bypass federal antitrust review. Research has linked this consolidation to price increases in dermatology and other specialties. In February 2024, the FTC, the Department of Labor, and HHS jointly issued a request for information on corporate ownership and consolidation in healthcare, naming private equity as a concern. The FTC’s 2023 action against U.S. Anesthesia Partners and its private equity backer is viewed as a signal case for how regulators may treat similar strategies in dermatology.21Center for American Progress. 5 Consequences of Private Equity’s Expansion in Health Care Services
If You Were a Patient at One of These Practices
Check the settlement website for your practice before its claims deadline. For Anne Arundel Dermatology, claims close July 8, 2026. For Derick Dermatology, claims close July 21, 2026. If you received medical care from a practice under federal fraud investigation, review your Medicare or insurance statements for procedures you don’t recognize, and report suspected fraud to the HHS Office of Inspector General. If you believe a practice refused to treat you because of a disability, including HIV status, the Justice Department accepts ADA complaints under Title III.