Neiman Marcus’s data breach lawsuit decision reversed

An old data breach was just reawakened as the Seventh U.S. Circuit Court of Appeals reversed last year's ruling and reinstated the data breach class action lawsuit against Neiman Marcus, according to Bloomberg News. After a 2013 breach of 350,000 credit cards, where 9,200 were proven to have been utilized fraudulently, plaintiffs sued the retailer. Some of these accusations include a breach of customer contract, engagement of deceptive business dealings, negligence and violating state data breach laws.

The National Law Review reports that this lawsuit was rejected by U.S. District Judge James B. Zagel last year who ruled that the plaintiffs did not suffer severe or concrete harm. This attack was one of many targeted at major U.S. retailers.

The current ruling found that the plaintiffs did indeed suffer injuries associated with this data breach. Furthermore, the ruling stated that even for customers whose card were not involved in fraudulent charges, could establish a case based on the money and time spent to protect themselves against future data breaches or identity theft. 

"In mid‐December 2013, Neiman Marcus learned that fraudulent charges had shown up on the credit cards of some of its customers," the decision states. "Keeping this information confidential at first (according to plaintiffs, so that the breach would not disrupt the lucrative holiday shopping season), it promptly investigated the reports. It discovered potential malware in its computer systems on January 1, 2014. Nine days later, it publicly disclosed the data breach and sent individual notifications to the customers who had incurred fraudulent charges."

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