Could You Be Eligible for Compensation in the CRA Class-Action Lawsuit? Here’s What You Need to Know!

If you’ve been keeping an eye on the news, you might have heard about the class-action lawsuit against the Canada Revenue Agency (CRA). This lawsuit could potentially affect millions of Canadians, and you might be one of them! Let’s dive into the details.

The Lawsuit Unveiled

Representative plaintiff Todd Sweet has initiated a class-action lawsuit against the CRA and the Canadian government. The lawsuit alleges negligence in safeguarding Canadians’ confidential information, leading to widespread privacy breaches. Unauthorized individuals reportedly accessed Canadians’ online accounts, including applying for the Canada Emergency Response Benefit (CERB) using real accounts.

The plaintiff is seeking court orders for the Government of Canada to pay compensation for the alleged privacy breaches and any required credit monitoring services. The government, however, denies any wrongdoing.

Are You Eligible?

Wondering if you’re part of this lawsuit? The criteria are quite specific. The lawsuit is brought on behalf of all individuals whose personal or financial information in their Government of Canada Online Account was disclosed to a third party without their consent between March 1, 2020, and December 31, 2020. However, there are some exceptions. If you contacted Murphy Battista LLP about the CRA privacy breach class action with Federal Court file number T-982-20 prior to June 24, 2021, you’re excluded from this lawsuit.

What Accounts Are Included?

When we talk about a “Government of Canada Online Account,” we’re referring to:

  • Canada Revenue Agency account
  • My Service Canada account
  • Any other Government of Canada online account accessed using the Government of Canada Branded Credential Service (GCKey)

Automatic Inclusion and Opting Out

If you meet the criteria mentioned above, you’re automatically included in the class action. You don’t have to lift a finger to participate. However, if you choose not to be part of the lawsuit, you must notify the Rice Harbut Elliott LLP by mail or email by no later than November 27, 2023.

Here is their information:

Rice Harbut Elliott LLP

Suite #820 – 980 Howe Street

Vancouver, BC V6Z 0C8

Email: service@rhelaw.com

What’s at Stake?

If you’re a class member and choose not to opt out, you won’t be able to make your own individual claim against the Government of Canada. In this lawsuit, damages will be sought for the class as a whole, and it will be up to the judge to decide how any awarded damages should be divided among class members. However, if you do opt out of the class, the results of the class-action lawsuit will not apply to you – good or bad. You will still retain the right to sue the government on your behalf.

Future Implications of this lawsuit?

Implications for Data Security

The lawsuit raises serious questions about how the Canadian government handles data security. Could this be a wake-up call for the government to tighten its cybersecurity measures? According to the International Federation of Accountants, data breaches can have long-lasting impacts on an organization’s reputation and trust. If the lawsuit succeeds, it could potentially force the government to invest more in cybersecurity infrastructure and personnel training to prevent future breaches.

Public Trust

Public trust is the cornerstone of any democratic institution, and this lawsuit could either make or break it for the CRA and the Canadian government. According to a survey conducted by Abacus Data in 2022, public trust in the Canadian government is at an all-time low. Incidents like these could exacerbate the issue, leading to increased skepticism and reduced engagement with governmental programs. On the flip side, if the government handles the lawsuit transparently and responsibly, it could serve as an opportunity to rebuild lost trust.

Legal Precedent

Legal precedents are like dominoes; once one falls, it sets off a chain reaction. Could this lawsuit set a precedent for similar cases involving data breaches in government agencies? According to McCune Law Group, class-action lawsuits can often set legal precedents that influence future cases. If Todd Sweet wins, it could open the floodgates for more lawsuits against governmental agencies, not just in Canada but potentially worldwide. This could lead to stricter data protection laws and regulations, making it a landmark case in the realm of digital privacy.

Conclusion

The class-action lawsuit against the CRA is a developing story with potentially far-reaching implications. Whether you choose to be a part of it or not, it’s crucial to stay informed.

For more information and updates, keep an eye on our blog!

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.