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Court throws out Latitude Financial hack proceedings

One self-represented man’s case against Latitude Financial over the March 2023 cyber attack has been thrown out.

user iconNaomi Neilson
Wed, 05 Jun 2024
Court throws out Latitude Financial hack proceedings
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The Federal Court found Shahriar Saffari’s case against the financial services company over a leak of his personal details had no reasonable prospects of success and dismissed the proceedings.

Justice Melissa Perry said that despite Saffari filing three different versions of a statement of claim, he failed to “identify any actual loss or damage despite claiming a substantial amount in compensation”.

This was in addition to three case management hearings at various stages of the proceedings, during which Saffari failed to make “progress in terms of … addressing the problems with his claims”.

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“The applicant’s case … rises no higher than the allegation that personal data relating to him has been made available to third parties who may engage in fraud or identity theft,” Justice Perry said.

“He does not allege that any of those risks have materialised such that he has suffered actual loss or damage.”

Up to 14 million Australian and New Zealand customers were caught up in the breach, which cost the company at least $95 million.

Saffari sought damages for negligence and breach of confidence, as well as declaratory and injunctive relief, against LFA Holdings, a wholly owned subsidiary of Latitude that issues the credit cards.

At the last stage of the proceedings, Saffari made an application to add DXC Technology and CrowdStrike because both companies were responsible for cyber security components within Latitude.

It was during this application that representatives for the Latitude entities made an oral request to dismiss the proceedings.

Justice Perry agreed with Latitude that Saffari’s case had placed a “disproportionate burden” on the court and the respondents, and to allow him to attempt his case again “would not be consistent” with the principles under the Federal Court of Australia Act.

Saffari has been ordered to pay the costs of his application to join DXC and CrowdStrike to Latitude.

Latitude is still facing multiple legal challenges, including a 73,000-person class action run by Gordon Legal.

Gordon Legal lawyer Aimee Dartnall said the class action has been left waiting for the Office of the Australian Information Commissioner to release information about the data breach.

“Latitude customers want answers, and they want their complaints to be heard,” Dartnall told Cyber Daily in May.

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