People who lived at Laguna Honda Hospital in San Francisco between April 14, 2022 and August 16, 2023, or who were sent a privacy violation notice for a stay after March 23, 2017, may receive $750 or a $1,000-plus payment from the $5.75 million Laguna Honda Hospital class action settlement with the City and County of San Francisco, paid automatically with no claim form. Class members choose cash or a special needs trust by November 10, 2026.
Current Status
Payments are automatic — there is no claim form. Every class member was mailed a notice with a CPT ID and Passcode and a Distribution Election Postcard, and the only decision to make is how to be paid: Option 1, a cash payment, or Option 2, an account in a pooled special needs trust that protects eligibility for SSI and Medi-Cal. Elections are due by November 10, 2026, and anyone who makes no election is paid in cash. November 10, 2026 is also the deadline to opt out or object. The final approval hearing is set for January 29, 2027 at 9:30 a.m. in the Superior Court of California, County of San Francisco, and no payment is sent until the court grants final approval.Free settlement alerts
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What Changed Recently?
The City and County of San Francisco has agreed to pay $5,750,000 to settle Tommy O. Johnson, et al. v. City and County of San Francisco, et al., Case No. CPF-20-517064, a class action brought in 2020 on behalf of residents of Laguna Honda Hospital and Rehabilitation Center in San Francisco. The court certified two classes on July 26, 2024, the parties agreed to settle in May 2025, and the court has now authorized notice to the classes.The named plaintiffs allege that the city and the hospital engaged in a pattern and practice of not complying with the nursing home regulations that protect patients’ rights, which they say harmed residents and contributed to the hospital’s decertification and the termination of its Medicare and Medicaid provider agreements in April 2022. They also allege violations of patients’ rights to privacy and confidentiality in their personal and medical information, under California Health and Safety Code section 1430(b) and the Confidentiality of Medical Information Act. The city denies that it did anything wrong, and the court has not decided the case in favor of either side.
Who Qualifies?
There are two settlement classes, and a person can be in both:- Patients’ Rights Class: every patient of Laguna Honda Hospital from April 14, 2022 through August 16, 2023.
- Confidentiality Class: every patient of the hospital from March 23, 2017 to February 17, 2026 (or their responsible party) to whom the San Francisco Department of Public Health sent written notice that their private medical and health information was acquired and disseminated without the patient’s consent to people not entitled to receive it.
How Much Can You Get?
After administration costs, attorneys’ fees and expenses, and a service award are paid, the net fund — estimated at approximately $3,907,500 — is divided in two steps:- Confidentiality Class: $750 to each member.
- Patients’ Rights Class: a $1,000 base payment to each member, plus a Residency Days Payment. The remaining fund is shared in proportion to the number of days each member lived at the hospital between April 14, 2022 and August 16, 2023, so a longer stay means a larger payment.
What Proof or Notice ID Is Required?
No documentation is required, and no claim has to be filed. Each notice carries a CPT ID and Passcode, which are used only to make the payment election online at the official settlement website. Someone who has lost them, or whose address has changed, should contact CPT Group through the settlement website.What Is the Deadline?
Distribution Election Postcards (or the online election) are due by November 10, 2026, the end of the 60-day Election Period. Requests for exclusion must be postmarked, and objections made, by the same date. A class member who has not been paid, or the legal successor of a deceased class member, may submit a Distribution Request to the Notice Administrator up to 90 days after the Election Period ends; payment then depends on funds being available.How Do You Take Action?
To choose how to be paid, mark Option 1 or Option 2 on the postcard that came with the notice, or make the election at the official settlement website using the CPT ID and Passcode on the notice. Anyone who does nothing stays in the settlement and is paid in cash.Option 1 — cash. A direct payment. Recipients of SSI or Medi-Cal are responsible for reporting a lump sum to the Social Security Administration and their county Medi-Cal office by the 10th day of the following month; SSI counts assets above $2,000 for an individual ($3,000 for a couple), and any excess has to be spent down within the calendar month to keep benefits.
Option 2 — pooled special needs trust. The payment goes into an individual account in a pooled trust run by the nonprofit CPT Institute, which pays vendors directly for qualified expenses — medical and therapeutic care, support services, phones, clothing, travel and entertainment — without affecting SSI or Medi-Cal eligibility. CPT Institute will be available to help with questions about either option once the court approves the settlement.
To opt out, mail a signed letter with your name, address, phone number and email address saying you want to be excluded, postmarked by November 10, 2026, to the Notice Administrator at the address given in the notice and on the official settlement website. Someone who opts out gets no payment and keeps the right to sue on their own. To object while staying in the settlement, send a written objection to the Notice Administrator by the same date with your contact details, a statement that you lived at the hospital during the relevant period, whether you or a lawyer will attend the hearing, the reasons for the objection, and your signature; the court will consider it, and class members may also object by appearing at the hearing.
What Happens Next?
The court will hold the final approval hearing on January 29, 2027 at 9:30 a.m. at the Civic Center Courthouse in San Francisco. Class members do not have to attend but may, and may ask to speak. The date can change without further notice, so the settlement website is the place to confirm it. If the court approves the settlement and any appeals are resolved, payments are made in the form each class member elected; if the court does not approve it, the lawsuit continues.Staying in the settlement releases the claims raised in this case against the City and County of San Francisco, as described in the notice and the settlement agreement on the official website.
Sources and Verification
- Official Laguna Honda Hospital settlement website (CPT Group, Notice Administrator)
- Court-authorized class action settlement notice, Tommy O. Johnson, et al. v. City and County of San Francisco, et al., Superior Court of California, County of San Francisco, Case No. CPF-20-517064
Questions
Can someone be paid from both Laguna Honda classes?
Yes. The classes overlap: a person who lived at Laguna Honda Hospital between April 14, 2022 and August 16, 2023 and who was also sent a written privacy violation notice for a stay after March 23, 2017 is in both, and receives the $750 Confidentiality Class award as well as the $1,000 base payment and Residency Days Payment of the Patients’ Rights Class.
Does the Distribution Election Postcard have to be returned to get paid?
No. Payment is automatic for everyone who does not opt out. The postcard that came with the notice only asks how the class member wants to be paid — cash, or an account in a pooled special needs trust. A class member who sends nothing back by November 10, 2026 is paid in cash.
What happens if a class member has died?
A legal successor of a deceased class member can submit a Distribution Request to the Notice Administrator, CPT Group, up to 90 days after the Election Period ends on November 10, 2026. The administrator verifies that the person was a class member before paying, and payment depends on settlement funds being available. The official settlement website explains how to reach CPT Group.
Should an SSI or Medi-Cal recipient choose cash or the special needs trust?
The notice sets out the trade-off without recommending either. A cash payment (Option 1) counts toward SSI’s asset limits and must be reported to the Social Security Administration and the county Medi-Cal office by the 10th day of the following month, with any excess spent down within the month. Option 2 places the money in a pooled special needs trust administered by CPT Institute, which pays for qualified expenses directly without affecting eligibility. CPT Institute will answer questions about both options once the court approves the settlement, and a benefits counselor or attorney can advise on an individual situation.
Why is the Patients’ Rights Class payment not a fixed amount?
The $750 Confidentiality Class award is fixed. The Patients’ Rights Class payment is a $1,000 base plus a share of what remains in the fund, divided by each member’s days of residence during the class period — so it depends on how many days the person lived at the hospital, how many people opt out, and the fees, costs and service award the court approves. The notice estimates the net fund at about $3,907,500.
