The plaintiffs bar is heralding a federal appeals court ruling that could make it easier for victims of data breaches to sue, but defense lawyers aren’t convinced there’s a sea change in the law.
On July 20, the U.S. Court of Appeals for the Seventh Circuit reversed dismissal of a class action against Neiman Marcus Group Ltd. over a 2013 breach that compromised about 350,000 credit cards of its customers. The panel held that the plaintiffs had established a “substantial risk of harm” from the breach to have standing to bring their case, including the 9,200 customers who were reimbursed for fraudulent charges but had to spend time and money to prevent future identity theft or other harm.
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