Data Breach Plaintiffs Have Standing In Lawsuit Against Neiman Marcus

[Audrey McNeil <audrey () riskbasedsecurity com>]

http://www.prweb.com/releases/2015/07/prweb12859656.htm

The United States Court of Appeals for the Seventh Circuit held that data
breach victims suffer injury for purposes of Article III standing and can
thus have their day in court against companies who fail to protect their
personal information from hackers. Ahdoot & Wolfson, PC, a national class
action law firm leading this lawsuit on behalf of people who had their
personal information accessed by a hacker in the Neiman Marcus data breach,
says this is a groundbreaking decision in light of continued data security
issues.

The class action against Neiman Marcus alleged that the data breach
plaintiffs suffered injuries even if they have not yet been victims of
identity theft or other fraud. These injuries include an increased risk of
future fraudulent charges and greater susceptibility to identity theft.
Chief Judge Wood noted that “the Neiman Marcus customers should not have to
wait until hackers commit identity theft or credit-card fraud in order to
give the class standing, because there is an ‘objective reasonable
likelihood’ that such an injury will occur.”

“This decision is a monumental win for all current and future data breach
victims, who have no choice but to entrust their sensitive personal
information to large corporations for safekeeping in order to function in
our society,” says Tina Wolfson, founding partner at Ahdoot & Wolfson, PC,
who represents the victims in this case.

Data breaches are a staple in recent news headlines. The Seventh Circuit’s
decision yesterday is favorable for all consumers, whether or not they have
yet been victims of a data hack. In support of its finding that these
plaintiffs have standing to sue Neiman Marcus, the Court reasoned that:
“Presumably, the purpose of the hack is, sooner or later, to make
fraudulent charges or assume those consumers’ identities.” The Court also
found that the present injuries associated with resolving fraudulent
charges and protecting oneself against future identity theft gave
Plaintiffs standing to bring their suit. The case citation is: Hilary
Remijas et al. v. Neiman Marcus Group, LLC, Case No. 14-3122 (7th Cir. July
20, 2015).

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