LifeLabs faces two class action lawsuits after data breach blunder
LifeLabs is currently facing two class action lawsuits after the laboratory testing company sustained a data breach that led to hackers accessing the data of some 15 million customers, Insurance Business reports.
Charles Brown, the CEO of LifeLabs, said in an earlier statement that most of the customers whose data was compromised by the incident are in B.C. and Ontario.
As a result, two class actions from both B.C. and Ontario were filed against the company. The claim filed in Ontario Superior Court accuses LifeLabs of negligence, breach of contract, and violating their customers’ confidence as well as privacy and consumer protection laws. The other claim filed in B.C. Supreme Court just days later alleges that the company lacked “adequate security” and “adequate training for employees” ahead of the attack, and that LifeLabs should have informed customers sooner after the incident.
B.C. Health Minister Adrian Dix previously stated that LifeLabs had requested some time before it could disclose the breach to the public because the company first wanted to ensure that its systems were secure from secondary attacks.
CTV News said that LifeLabs has yet to file a statement of defense in the case.
While it has yet to be certified, the Ontario class action is asking for more than $1.13 billion in compensation for clients, CBC News reported. Lawyers representing those affected clients say that they experienced repercussions due to their data being leaked, such as damage to their credit reputation, wasted time and inconvenience, and mental distress.
LifeLabs CEO Brown offered assurances that the company’s consultants had seen no evidence that the data was trafficked by criminal groups.