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Court orders LifeLabs data breach report release, rejects bid to keep it quiet

Probe found LifeLabs 鈥榝ailed to take reasonable steps鈥 to protect client data in 2019 hack
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A sign is seen outside a LifeLabs location in North Vancouver B.C., on October 22, 2021. THE CANADIAN PRESS/Darryl Dyck

A long-withheld investigation into a 2019 hacking at LifeLabs Inc. that compromised millions of Canadians鈥 health data has finally been made public after an Ontario court dismissed the company鈥檚 appeal to prevent its release.

A statement from the privacy commissioners of both Ontario and British Columbia says their joint report, completed in June 2020, found that LifeLabs 鈥渇ailed to take reasonable steps鈥 to protect clients鈥 data while collecting more personal health information than was 鈥渞easonably necessary.鈥

The report ordered LifeLabs to address a number of issues such as appropriately staffing its security team, and the commissioners鈥 statement says the company complied with all of the orders and recommendations.

LifeLabs had cited litigation and solicitor-client privilege to prevent the document鈥檚 publication, but this was opposed by the commissioners鈥 offices.

The company then sought a judicial review in Divisional Court in Ontario before the case made its way to the Ontario Court of Appeal, where LifeLabs鈥 appeal was dismissed.

B.C. Information and Privacy Commissioner Michael Harvey says in a statement that 鈥渢he road to accountability and transparency has been too long鈥 for the victims of the data breach.

鈥淟ifeLabs鈥 failure to put in place adequate safeguards to protect against this attack violated patients鈥 trust, and the risk it exposed them to was unacceptable,鈥 Harvey says. 鈥淲hen this happens, it is important to learn from past mistakes so others can prevent future breaches from happening.

鈥淏ut to learn from lessons, we need to share them.鈥

Ontario Information and Privacy Commissioner Patricia Kosseim says in the statement that she is pleased with the court鈥檚 decision to uphold the decision by her office 鈥渢o help restore public trust in the oversight mechanisms designed to hold organizations accountable.鈥

In May, Canadians who applied to be part of a class-action lawsuit against LifeLabs began receiving cheques and e-transfers, with administrator KPMG saying more than 900,000 valid claims were received.

An Ontario court had approved a total Canada-wide settlement of up to $9.8 million in the data breach, which allowed hackers to access the personal information of up to 15 million customers.





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