The Medibank Private Ltd (ASX: MPL) share price is in the green on Thursday despite the company facing a shareholder class action.
It comes on the back of a massive cyber-attack that saw the data of 9.7 million Australians in the hands of hackers late last year.
Right now, the Medicare share price is $3.295, 0.76% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.97% at the time of writing.
Let's take a closer look at the latest news from the ASX 200 health insurance giant.
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Medibank faces shareholder class action
The Medibank share price appears not to have been impacted by news a shareholder class action against the company has been filed in the Supreme Court of Victoria.
The action alleges the company breached continuous disclosure obligations and ASX listing rules by not disclosing information related to alleged deficiencies in its cyber security systems.
Medibank intends to defend the action, understood to have been brought on behalf of investors who bought shares in Medibank between July 2019 and October 2022.
The law firm behind the legal action is United States-based Quinn Emanuel.
Medibank revealed it had been served with the action after the market closed on Wednesday.
The ASX 200 company bore $26.2 million of costs related to the cyber-attack last half.
It expects to fork out another $13.8 million to $18.8 million this half. That's before any potential remediation, regulatory, or litigation costs.
The shareholder class action is the second suit faced by the company as a result of the breach.
Medicare vowed to defend itself against a class action brought on behalf of current and former customers last month. It included allegations of breach of contract, contraventions of Australian consumer law, and breach of equitable obligations of confidence.
It was filed in the Federal Court of Australia and brought by law firm Baker McKenzie, funded by Omni Bridgeway.
Medibank share price snapshot
The Medibank share price tumbled 18% when the company revealed the cyber-attack in October, and it hasn't quite recovered yet. It remains 6% lower than it was prior to its ill-fated announcement.
Though, it has gained 6% over the last 12 months and 13% so far this year.
Comparatively, the ASX 200 has gained 3% year to date and has fallen 5% since this time last year.
