Estée Lauder settles class action over two separate data breaches in 2023

American multinational cosmetics giant Estée Lauder has agreed to a payout of over £820,000 to settle a class action lawsuit in Canada related to two separate data breach incidents in 2023.

As per the terms of the settlement agreement, Estée Lauder will set up a settlement fund of 1.515 million Canadian dollars, which will be used to compensate victims who suffered substantiated or unsubstantiated losses during each or both data breach incidents.   

The settlement figure, which will also cover class counsel fees, disbursements, administrative costs, and notice costs, was agreed upon after the Superior Court of Québec authorised a class action against the company for settlement purposes only. The Court will convene again on 3rd June when it will announce its decision to approve or disapprove the settlement figure agreed to between the parties. 

The data breach incidents took place between May 31, 2023 and July 12, 2023, but the cosmetics giant announced the incidents in mid-July, stating that a hacker had obtained some data from its systems and caused disruptions to its business operations.

Estée Lauder, which owns cosmetics brands like MAC, Bobbi Brown and Tom Ford Beauty, admitted that the data breach incidents potentially compromised the personal and financial information of its customers, but did not admit to any wrongdoing when agreeing to settle the class action lawsuit in Canada.

Affected customers are entitled to receive compensation of up to $5,000 Canadian dollars depending upon the amount of harm caused to them, provided they submit a timely and valid claim with supporting documentation of out-of-pocket expenses related to the breach incidents.

Customers who were affected by each or both incidents are automatically entitled to a minimum of $150 and $300 Canadian dollars without being required to submit proof of financial losses experienced due to the breach incidents. They may, however, choose to opt out of the settlement or share their concerns or objections about the agreement by May 14.