Medibank share price resilient as class action law suit hits

The Medibank Private Ltd (ASX: MPL) share price is edging higher in morning trade, up 0.8% after opening 0.2% lower.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock, Australia’s largest health insurer, closed yesterday trading for $2.97. Medibank shares are currently trading for $3 apiece.

While that’s no huge lift, the Medibank share price has managed a positive move this morning. That’s despite what looks to be the commencement of a class action lawsuit in regard to the massive 12 October data breach.

What’s happening with the data breach on the legal front?

As a quick recap, in October Russian-linked cybercriminals accessed the names, dates of birth, addresses, phone numbers and email addresses of 9.7 million current and former Medibank customers. They also hacked into the health claims data for some 480,000 customers.

The Medibank share price fell more than 20% over the following weeks in the wake of the cyberattack. The health insurer did not pay the ransom demands, and much of the stolen data was published on the dark web.

This morning the company reported that class action lawyers from Maurice Blackburn have lodged a representative complaint with the Office of the Australian Information Commission (OAIC).

Medibank said that the OAIC has not yet been in contact about the complaint.

“The complaint includes allegations that Medibank has breached the Australian Privacy Principles and seeks compensation for individuals whose personal information was exposed as a consequence of the cybercrime,” the health insurer stated.

Medibank said it will continue to support its customers with the impact of the cybercrime through its previously announced Cyber Response Support Program. That program includes “mental health and wellbeing support, identity protection and financial hardship measures”.

The company also reiterated that it will continue to cooperate with the OAIC in this ongoing investigation.

Medibank share price snapshot

The Medibank share price remains down 15% since October’s massive data breach was revealed. As you can see in the chart below, shares are now down 13% year to date.

The post Medibank share price resilient as class action law suit hits 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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