Medibank share price on watch amid class action and new data threat

The Medibank Private Ltd (ASX: MPL) share price is on watch this morning.

This comes as news hits the wires that the S&P/ASX 200 Index (ASX: XJO) health insurer has been hit with a class action over the 12 October data breach.

Yesterday the Medibank share price finished up 0.4% after the company updated the market on its response to the data theft.

The company said the hacker had accessed the name, date of birth, address, phone number and email address of 9.7 million current and former customers along with some of their authorised representatives.

That group includes  5.1 million Medibank customers, 2.8 million AHM customers and 1.8 million international customers.

Medibank said it would not pay any ransom demands.

According to CEO David Koczkar:

Based on the extensive advice we have received from cybercrime experts we believe there is only a limited chance paying a ransom would ensure the return of our customers’ data and prevent it from being published.

Today the company faces its first, but perhaps not last, class action over the incident.

This comes alongside news that the hackers have threatened to publish the customer data within 24 hours.

What’s happening with the Medibank class action?

The Medibank share price is on watch after Bannister Law Class Actions and Centennial Lawyers reported they will jointly investigate the cyber breach.

In a statement released this morning, Bannister said (courtesy of The Sydney Morning Herald):

We believe the data breach is a betrayal of Medibank Private’s customers and a breach of the Privacy Act. Medibank has a duty to keep this kind of information confidential.

The two firms will be investigating Medibank breached their privacy policy and the terms of their contract of the medical insurance which they provided to their customers. The lawyers will also assess whether damages should be paid to Medibank customers as a result of their breaches.

Medibank share price snapshot

The Medibank share price has come under significant pressure since the hacking attack was revealed. Shares are currently down 17.5% in 2022. That compares to an 8.6% year-to-date loss posted by the ASX 200.

The post Medibank share price on watch amid class action and new data threat appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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