The class action has not yet been certified, but asks for more than $1.13 billion CAD in compensation for LifeLabs’ clients, who say they faced damage to their credit reputation and experienced mental anguish.
The proposed lawsuit accuses LifeLabs of breach of contract, negligence and violation of privacy and consumer protection laws. It was filed on behalf of five plaintiffs, but seeks to represent everyone who used the lab’s services.
Further, the statement of claim alleges that LifeLabs “failed to implement adequate measures and controls to detect and respond swiftly to threats and risk.”
The court document states that the company failed to implement “any, or adequate, cybersecurity measures,” as outlined by The Canadian Press. It also states that LifeLabs stored personal information on unsecured networks and didn’t encrypt the data.
“The Plaintiffs and the Class Members are therefore obliged to take all reasonable steps necessary to protect their information including hours of wasted time and inconvenience involved in applying for identity theft protection services, changing passwords, notifying financial institutions and applying for new social insurance numbers from Service Canada, as well as the humiliation and mental distress of having lab tests results released without their consent,” the statement of claim reads.
The plaintiffs are also seeking moral and punitive damages.
Source: The Canadian Press