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

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....

Tencent Invests €1.2B in Ubisoft Spin-Off to Expand Gaming Empire

Chinese tech giant Tencent has made a €1.2 billion ($1.25 billion) investment in a newly formed Ubisoft subsidiary, securing a....

Trump’s Auto Tariffs Hit Canada Hard: A Trade War Unfolds

The U.S. has imposed a 25% tariff on finished vehicles imported into the country, marking one of the most severe....

Quebec Budget 2025 -2026 Fights Trump Tariffs But Sinks Deeper Into Debt

Quebec's finance minister, Eric Girard, has unveiled a historic $165.8-billion budget, aiming to strengthen the province’s economy in response to....

Samsung TV Pioneer Han Jong-Hee Passed Away at 63

Samsung Electronics has lost one of its key leaders. Han Jong-Hee, the co-CEO who played a major role in shaping....

Trump Plans New Tariffs for Vehicles & Pharmaceuticals, Near Future

U.S. President Donald Trump has announced plans to impose tariffs on vehicles and pharmaceuticals, further expanding his aggressive trade policies.....

Key Business Events to Watch in Canada This Week

This week brings several major developments in the Canadian business world. From political campaigns to economic reports, here are the....

Hudson’s Bay Begins Liquidation, But Six Stores Are Spared

Hudson’s Bay, Canada’s oldest company, has received court approval to start liquidating most of its stores. The Ontario Superior Court....

U.S. Tariffs Could be an Uphill Battle for Canada’s Greenhouse Industry

A fresh wave of U.S. tariffs on Canadian imports has sent shockwaves through Canada’s greenhouse sector, which heavily depends on....

Google’s $32B Wiz Deal: A Game-Changer for Cloud Security

Google has announced its biggest-ever acquisition, agreeing to buy cybersecurity firm Wiz for $32 billion in cash. This massive deal....

PepsiCo To Acquire Poppi to Expand in Healthy Soda Market

PepsiCo announced on Monday that it will acquire the prebiotic soda brand Poppi for $1.95 billion. The move comes as....

Hudson’s Bay May Start Its Stores Liquidation As Early As Tuesday

Toronto – Hudson’s Bay, the retail giant, is battling for survival as it seeks court approval to begin liquidating its....