Canadian credit union giant Desjardins says it has reached a settlement in the class action law suit over the massive data breach that was revealed in June 2019.
The settlement agreement submitted to the Superior Court of Quebec for approval allows for a maximum amount of CA$200,852,500 to be paid out as individual recovery to eligible individuals who file a claim.
The agreement was concluded between Desjardins and the plaintiffs represented by law firms Siskinds Desmeules and Kugler Kandestin after they filed class actions in connection with the privacy breach.
In 2019, Desjardins announced that an unauthorised use of internal data by an employee had led to the breach of personal information of 4.2 million members and 137,000 business clients. The breach included the social insurance number, address and details of banking habits of members.
Desjardins, which worked with regulators after the breach to overhaul its security strategy, said was “pleased that a settlement agreement was reached.”
The settlement agreement still needs to be approved by the Supreme Court of Quebec before the claims process can begin.
Related: Watchdog criticises finance co-op Desjardins over data breach
All individuals affected by the privacy breach are included in the settlement agreement – namely current and former Desjardins banking members; current and former clients with a credit card or in-store financing; anyone who received a letter informing them of the situation.
Those impacted by the situation announced in June 2019 can claim up to $90; those whose identity was stolen after January 1, 2017, can claim up to $1,000.
Once the court approves the settlement, eligible individuals will be informed through notices in national newspapers and messages in AccèsD or by mail. The notices will state that the settlement agreement has taken effect and the claims period is open. At that point, eligible individuals can file their claim with RicePoint, the independent administrator – and not Desjardins.
Full details are available at www.desjardinssettlement.com
