Data Breach Plaintiffs’ Suit Reinstated; Court Holds Affected Customers Have Standing

28 July 2015
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Key takeaways

  • The Seventh Circuit Court of Appeals reinstated a consumer class action seeking damages against Neiman Marcus in the wake of its 2013 data breach.
  • The court held that consumers had standing to sue based on their allegations of time lost in resolving fraudulent charges and protecting against future identity theft. 
  • Up to now, data breach class actions generally have failed at the motion to dismiss stage due to insufficient allegations of injury. Time will tell if Neiman Marcus signals a reversal of that trend.