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23andMe breach: ‘Thousands’ seek to join B.C. class-action suit after 6.9M hacked

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Hackers were able to gain access to the personal information of 6.9 million 23andMe customers in a data breach, the company confirmed on Tuesday — representing nearly half of 23andMe’s reported user base of 14 million customers.

The genetic testing company, which offers health insights and ancestry information based on customer-submitted DNA collected by saliva swabs, said it learned of the hack in early October. After weeks of speculation, the true extent of the data breach has been revealed.

In some cases, users’ names, family trees, ancestry reports, locations, profile pictures and birth years were leaked. While the stolen data does not include DNA records, 23andMe told Global News in an email that the breach may have leaked “specifically where on (users’) chromosomes they and their relative had matching DNA.”

According to a proposed class-action lawsuit against 23andMe filed in B.C. Supreme Court, this stolen information was then put up for sale on the dark web.

The lead plaintiff in the lawsuit is an unnamed B.C. man, whose identity is protected under a publication ban, lawyer Sage Nematollahi told Global News.

Nematollahi’s firm KND Complex Litigation and Vancouver-based law firm YLaw Group are working together to pursue this class-action lawsuit.

Nematollahi said in a phone interview that “thousands” of Canadians have reached out to his law firm in the wake of the data breach, seeking to join the class-action suit. He said the volume of inquiries was “unprecedented” in his career.

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The lawsuit alleges that 23andMe engaged in “willful, knowing or reckless conduct” by not implementing and maintaining proper data retention and data protection practices.

“As a result, they affirmatively exposed the highly sensitive and highly valuable customer data in their control, custody or possession to unauthorized parties and cybercriminals,” the lawsuit reads.

The suit seeks unspecified monetary damages, including the price that affected customers paid for 23andMe’s services as well as further damages resulting from the data breach. The proposed class-action lawsuit is open to anyone residing in Canada whose personal information was leaked by 23andMe.

Nematollahi wrote in a statement that, as a large business operator, 23andMe is held to “stringent standards under Canadian privacy laws, which require it to properly and responsibly manage and protect its customers’ highly sensitive and highly valuable personal information.”

“It is our hope that this class action will shed light on the facts, provide access to justice to Canadian customers who have been affected by this situation, and promote behaviour modification and responsible data management practices in the industry,” he added.

The proposed class-action lawsuit is being “actively pursued,” Nematollahi said, and the next court date for the case is slated for January.

Nematollahi says he and his colleagues are seeking an expedited court date to discuss recent tactics undertaken by 23andMe, which include a change to their terms of service that would force users into binding arbitration for any legal disputes. This means users would not be able to file or join class-action lawsuits.

23andMe is only giving users 30 days from when they receive the email about the new policy to opt out, The Verge reports. Users can opt out by contacting arbitrationoptout@23andme.com.

“We have strong objections to these moves and tactics, and are taking steps to address this situation with the Court on an urgent basis in order to protect the interests of our clients and Canadian customers of 23andMe,” Nematollahi said.

How did the leak happen?

The company says a “threat actor” gained access to a small percentage of 23andMe accounts via “credential stuffing.”

“That is, usernames and passwords that were used on 23andMe.com were the same as those used on other websites that have been previously compromised or otherwise available,” 23andMe said in a blog post.

The hackers were able to access 14,000 accounts, less than 0.1 per cent of the user base, using these usernames and passwords that had previously been leaked. From this small seed, the hackers were able to access information from millions more accounts through 23andMe’s DNA Relatives and Family Tree features, which allow users to share information with other users they are genetically linked to.

Approximately 5.5 million users had data leaked from their DNA Relatives profile, as well as an additional 1.4 million users through the Family Tree feature, “each of which were connected to the compromised accounts,” 23andMe says.

The genetic testing company says it emailed all customers to notify them of the data breach and now requires all new and existing users to log in to their accounts using two-step verification.

“Protecting our customers’ data privacy and security remains a top priority for 23andMe, and we will continue to invest in protecting our systems and data,” the company said.

It recommends that customers change their password to one that is not easy to guess and is unique to their account.

Users can also opt out of the DNA Relatives feature to prevent their information from being shared with other accounts. Customers can opt out by selecting the “Manage Preferences” option on their “Account Settings” page.

Users who want to fully delete their 23andMe accounts and personal information can do so within the “23andMe Data” section on their “Account Settings” page.

“While we will delete the majority of your Personal Information, we are required to retain some information to comply with our legal obligations,” 23andMe writes on its website. “Deleting an account and associated data will permanently delete the data associated with all profiles within the account.”

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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