September 09, 2015 Articles

Data Breach Class Claims Survive Clapper

The Seventh Circuit finds that the plaintiffs' alleged future injuries satisfied Article III in Neiman Marcus data breach case

by Kristin Shepard

In January 2014, luxury retailer Neiman Marcus disclosed that it had suffered a cyber attack in which hackers may have gained access to 350,000 credit and debit cards used at its stores in late 2013. Plaintiffs, all of whom made credit or debit card purchases from the retailer during the relevant time period, filed a putative class action lawsuit on behalf of themselves and all other customers whose card information may have been compromised. Neiman Marcus moved to dismiss for lack of standing; the district court granted that motion, holding that the plaintiffs lacked standing under Article III of the United States Constitution. Remijas v. Neiman Marcus Grp., LLC, No. 14 C 1735, 2014 WL 4627893 (N.D. Ill. Sept. 16, 2014).

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