Canadians potentially involved in class-action suit against Wealthsimple

Wealthsimple, an online investment management app, is facing a potential class-action lawsuit following a data breach that occurred on Aug. 30 and was disclosed in early September. Slater Vecchio LLP, a law firm, has initiated the first steps towards this lawsuit, alleging that sensitive information such as names, addresses, Social Insurance Numbers, account numbers, and government-issued IP addresses were accessed and stolen during the breach.

According to Justin Giovannetti, an associate lawyer at Slater Vecchio, individuals impacted by the breach are urged to come forward and share their experiences with the firm to understand the potential effects of the data breach. The proposed class-action lawsuit aims to represent individuals across Canada whose information was compromised, with a specific subclass for those who have experienced direct harm like financial losses, identity theft, or fraud due to the misuse of their data.

Wealthsimple has responded to the breach by offering credit monitoring for two years to those affected. However, Giovannetti believes this response is insufficient as it is only for a limited time, raising concerns about the long-term protection of individuals’ data. He suggests that fraudsters could potentially exploit this situation if individuals are unable to access these services before the deadline of Nov. 30.

Individuals impacted by the breach are encouraged to provide their information and contact details through Slater Vecchio’s website to be included in the class-action lawsuit. The lawsuit will proceed to a certification hearing for approval or dismissal, a process that could span several years.

In response to the proposed lawsuit, Wealthsimple has stated that they believe the claims are baseless and are prepared to defend themselves vigorously. They emphasize that upon discovering the data breach, they acted promptly to address the issue, notifying all affected customers and providing complimentary credit and dark web monitoring, as well as identity theft protection and insurance. Wealthsimple reiterates their commitment to maintaining the privacy of their clients and supporting them through this challenging time.