Seventh Circuit Hears Class Action Suit Against Neiman Marcus Over Data Breach

On January 23, the Seventh Circuit Court of Appeals heard oral arguments in a class action suit against Neiman Marcus Group LLC over the alleged 2013 hack that compromised the credit card numbers of 350,000 shoppers.

The suit was one of multiple proposed class actions filed after hackers infiltrated Neiman Marcus' payment security system with malicious software. The retailer disclosed the cyber attack to customers on January 10, 2014.

The four plaintiffs, led by Hilary Remijas, sued Neiman Marcus last March, alleging that the retailer cut corners on security measures that could have prevented or mitigated the security breach and that it did not give them timely notice of the attack. The retailer's alleged negligence exposed them to both fraudulent charges and an increased risk of identity theft, according to the complaint.