LifeLabs class-action payments of $7.86 start flowing to more than 900,000 claimants

TORONTO — Canadians who applied to be part of a class-action lawsuit against LifeLabs Inc. are now receiving cheques and e-transfers.

KPMG, which is administering the claims, says on the class-action website that more than 900,000 valid claims were received.

Given the large number of valid claims, KPMG says claimants will receive an e-transfer of $7.86. Those receiving a cheque will get $5.86, after deducting a $2 processing fee.

The class action was launched against LifeLabs after a 2019 data breach allowed hackers to access the personal information of up to 15 million customers.

An Ontario court approved a total Canada-wide settlement of up to $9.8 million.

LifeLabs has said most of the affected customers were in Ontario and British Columbia.

In 2020, the B.C. and Ontario privacy commissioners ordered LifeLabs to improve how it safeguards personal health information, and to collect less of it from customers.

The payments are significantly smaller than what many claimants had been expecting.

When the class-action settlement was approved last fall, potential claimants were told they would be eligible to receive about $50, up to a maximum of $150, though legal fees and taxes would be deducted. The precise amount, however, would be determined based on how many claims were filed.

A LifeLabs spokesperson said in an email the company "will continue to work to protect itself against cybercrime and is committed to becoming a global leader in protecting personal health information and healthcare data."

This report by The Canadian Press was first publishedMay 14, 2024.

The Canadian Press