On August 3, 2022, the Québec Superior Court of Justice (the Court), in Zukerman c. MGM Resorts International, 2022 QCCS 2914, authorized a class action against MGM Resorts International for its alleged failure to implement proper security measures to protect its customers’ personal information in relation to a 2019 data breach.
The Plaintiff, Evan Zuckerman (Zuckerman), sought authorization to commence a class action on behalf of all persons in Québec who were affected by MGM Resort’s data breach that occurred in July 2019. The personal information and/or financial information of more than 10 million hotel guests who stayed at MGM Resorts was exposed in the data breach. Exposed data included names, addresses, phone numbers, date of birth, email addresses and credit card information. Zuckerman argued that MGM failed to implement proper security measures to protect its customers’ personal information, to timely notify its customers of the data breach and to offer adequate protection to customers following the data breach.
MGM argued that the application for class action authorization fails to meet all the criteria set out at article 575 of the Civil Code of Procedure and sought the dismissal of the application for the reason that Québec courts lacked jurisdiction because the application presents no real and substantial connection to Québec.
The Court found that Zukerman established an “arguable case” with respect to MGM’s purported failure to adequately protect its customers’ personal information, to properly and promptly notify its customers of the data breach and to provide adequate measures to protect against the misuse of their information. In addition, the Court ruled that it has jurisdiction because Zukerman established prima facie that he suffered prejudice in Québec as a result of MGM’s purported faults. The Court declined MGM’s request seeking that the Court decline jurisdiction in favor of the US District Court.
Accordingly, the Court granted the Plaintiff’s application for authorization to institute a class action against MGM resorts.
Summary By: Victoria Di Felice
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