Data Management News

Medibank faces class action lawsuit over data breach

Eliza Sayon Feb 9, 2023

2 min read

Medibank is currently facing a class action lawsuit filed on behalf of customers who were negatively affected by the cyber security breach last year.

Following last year’s data breach where the personal information of thousands of customers was stolen and released into the dark web, the health insurance company received a class action lawsuit in the Federal Court on Tuesday from international law firm Baker & McKenzie.

Check out: Medibank hack worse than first thought

“Medibank understands that these proceedings have been brought on behalf of current and former customers in relation to the cybercrime event Medibank has previously reported and are being brought by Baker & McKenzie and funded by Omni Bridgeway,” a statement from the company’s website reads.

“Medibank will defend the proceedings.”

According to the statement, Medibank is aware that the allegations of the lawsuit include a breach of contract, contraventions of the Australian Consumer Law and breach of equitable obligations of confidence.

“Medibank continues to support its customers from the impact of the cybercrime through our previously announced Cyber Response Support Program which includes mental health and wellbeing support, identity protection and financial hardship measures,” the statement continued.

Check out: Law firms to file class action lawsuits on Medibank data breach

Several other law firms flagged their intentions earlier this year to file similar actions against Medibank, such as Maurice Blackburn Lawyers, Bannister Law Class Actions and Centennial Lawyers.

At the time, the firms claimed to have already registered tens of thousands of Medibank customers and said the action could secure compensation for as many as 9.7 million.

Check out: Cyber security experts warn rise of cybercrime-as-a-service

According to the Mandarin, Medibank’s class action lawsuit is putting pressure on federal government to be firmer with corporate cyber-security standards by implementing reforms that will address chronic personal-data hoarding by organisations.

With AAP

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.