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ARTICLE · 04 JULY 2018

Seventh Circuit Revives Class Action Security Breach Lawsuit

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Reversing the lower court's decision, the appellate court found that the customers sufficiently alleged economic damages in the form of security costs and lost time.

United StatesLitigation, Mediation & Arbitration

On April 11, 2018, the Court of Appeals for the Seventh Circuit revived a proposed class action alleging a major book retailer failed to secure customers' financial data during a 2012 security breach. Reversing the lower court's decision, the appellate court found that the customers sufficiently alleged economic damages in the form of security costs and lost time. The ruling follows the district court's earlier ruling granting the defendant company's motion to dismiss on grounds that the class representatives had failed to show economic damages.

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