Canadians could get up to $5,000 in latest data breach settlement
Canadians affected by a data breach could claim up to thousands of dollars in a proposed class-action settlement.
On Monday, Concilia Services Inc., a Montreal-based claims administrator, announced that a proposed settlement had been reached in the class-action lawsuit against Estée Lauder Companies Inc. and its subsidiary Estée Lauder Cosmetics Ltd. The lawsuit against both Estée Lauder companies arose due to two data incidents that occurred in 2023, in which Canadians’ personal and financial data could have been compromised.
The company has agreed to a proposed settlement of $1,525,000 to resolve all claims.
The allegations
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According to a court document, the company, which manufactures and sells skincare, makeup, fragrance, and hair care products, discovered on May 31, 2023, that an unauthorized third party had accessed certain files.
The incident was followed by a similar yet unrelated incident on July 12, 2023, during which third parties accessed the company’s system and obtained certain personal information of its clients.
On Sept. 7, 2023, Quebec-based law firm Lex Group Inc. filed a class-action lawsuit against both companies. On behalf of affected Canadians, the lawsuit seeks compensatory and punitive damages due to the data incidents.
Are you eligible?
You could be eligible to file a claim if you’re a Canadian whose personal or financial information held by Estée Lauder was compromised or stolen in the May and July 2023 data breach incidents. Those impacted may have received an email or letter from the company informing them of the incident.
How much could you receive?
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Estée Lauder Companies Inc. and Estée Lauder Cosmetics Ltd. agreed to a settlement of $1,525,000. According to the company, the settlement is not an admission of wrongdoing. Both parties agreed to a settlement to avoid the risk and expense of continued litigation.
Canadians who can prove that they suffered losses as a result of the data breach can claim a maximum of $5,000. This includes losses such as paying for a credit monitoring service, expenses as a result of identity theft, unpaid time off to address issues, and other miscellaneous expenses incurred.
Canadians who were affected by the May or July data breach but don’t have documents to prove out-of-pocket losses can claim $150. Some members impacted in both can claim $300.
Payments could increase if there are remaining funds, or may be reduced if approved claims exceed available funds. If the remaining amount comes out to less than $3 per person, no payments will be made. Instead, remaining funds will be given to charities after fees are deducted.
Money will be sent by Interac e-Transfer, but can be made by cheque by written request to the claims administrator.
What should you do next?
If you’re eligible for a claim, you don’t have to do anything at this time. However, you can keep up with the latest updates on the Estée Lauder Data Incidents Class Action Settlement website.
The next hearing is on June 3 at the Superior Court of Québec in Montreal, and the deadline to opt out is June 1.
Eligible Canadians could also file a claim in another data breach class-action lawsuit against MGM Resorts International.