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