The sign for a LifeLabs location in North Vancouver, B.C., pictured in October 2021. The company said most of its customers affected by the data breach were in British Columbia and Ontario. (Darryl Dyck/The Canadian Press)


15 May 2024 Tags:

Canadians who joined the class-action lawsuit against LifeLabs Inc. are now receiving their compensation in the form of cheques and e-transfers. The financial services firm KPMG, responsible for administering the claims, announced on the class-action website that over 900,000 valid claims were filed.

Due to the high volume of claims, each claimant will receive an e-transfer of $7.86. Those opting for a cheque will get $5.86 after a $2 processing fee is deducted.

The class-action lawsuit was initiated following a significant data breach in 2019, where hackers gained access to the personal information of up to 15 million customers. The lawsuit claimed that LifeLabs failed to adequately protect sensitive health information.

Craig Jones, a law professor at Thompson Rivers University in Kamloops, British Columbia, noted that the judge approving the settlement found no evidence that the stolen data was misused or that any claimants suffered harm. The judge also assessed that the likelihood of success at trial was low, and thus deemed a settlement ranging between $4.9 million and $9.8 million as appropriate.

When the settlement was approved last fall, potential claimants were initially informed they could receive about $50, up to a maximum of $150, before legal fees and taxes were deducted. However, the actual amount depended on the total number of claims filed. The unexpectedly high number of claims significantly reduced the compensation amount per person.

Jones emphasized that this outcome does not reflect a failure of the class-action system. He explained that class actions serve dual purposes: providing compensation where harm has occurred and deterring companies by penalizing inadequate protections. Although no direct harm was proven in this case, the settlement serves as a deterrent to encourage better data security practices in the future.

Most of the affected LifeLabs customers were from Ontario and British Columbia. In response to the breach, privacy commissioners from these provinces ordered LifeLabs in 2020 to enhance their data protection measures and reduce the amount of personal information they collect from customers.

The LifeLabs data breach and subsequent class-action lawsuit highlight the importance of robust cybersecurity measures for companies handling sensitive personal information. Although the financial compensation for claimants was lower than initially expected, the case underscores the need for companies to take data security seriously to prevent similar incidents in the future.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....

In Canadian Business This Week: Key Events to Watch

As Canada steps into a new business week, several developments are set to shape the national economic narrative. From politics....

Ontario Businesses Fined for Hiring 700 Unauthorized Foreign Workers

A major federal investigation has resulted in significant penalties for three Ontario-based businesses that were found guilty of employing hundreds....

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....