After months of legal proceedings, the maximum payout for the Lifelabs class action lawsuit has been significantly reduced from an initial estimate of $150 to a mere $7.86.
The class action lawsuit was filed against Lifelabs, a Canadian medical laboratory, after a cyberattack in 2019 compromised the personal information of approximately 15 million customers. The stolen data included names, addresses, email addresses, login credentials, and health card numbers.
Initially, the plaintiffs in the class action lawsuit were seeking a maximum payout of $150 per affected customer. However, after negotiations with Lifelabs, the proposed settlement has been reduced to a maximum of $7.86 per customer.
According to the proposed settlement, customers who had their personal information stolen will be eligible to receive a payout of $25 for each year of credit monitoring services they have used since the cyberattack. This means that customers who have used credit monitoring services for three years will receive a maximum payout of $75.
In addition, customers who have experienced financial losses as a result of the cyberattack may be eligible for additional compensation. This will be determined on a case-by-case basis.
The proposed settlement also includes measures to improve Lifelabs’ cybersecurity practices, such as implementing additional security measures and conducting regular audits.
The reduced maximum payout has been met with disappointment and criticism from the plaintiffs and their lawyers. They argue that the proposed settlement does not adequately compensate customers for the breach of their personal information.
However, Lifelabs maintains that the proposed settlement is fair and reasonable, and that it takes into account the financial impact of the COVID-19 pandemic on the company.
The proposed settlement is still subject to court approval, and a hearing is scheduled for June 2021. Customers who wish to participate in the class action lawsuit must submit a claim by September 2021.
In the meantime, Lifelabs has apologized for the cyberattack and has taken steps to improve its cybersecurity measures to prevent future breaches. Customers are advised to monitor their credit and financial accounts for any suspicious activity.
While the reduced maximum payout may be disappointing for affected customers, it serves as a reminder of the importance of strong cybersecurity measures and the potential consequences of a data breach.
