7th Circuit Declines En Banc Rehearing in Neiman Marcus Data Breach Ruling

Jody Godoy reports:

The Seventh Circuit declined to rehear an appeal it decided against Neiman Marcus over a payment card data breach on Thursday, leaving in place the precedential ruling that held plaintiffs can sue for the trouble and expense of preventing fraud on their accounts.
The ruling will allow the suit in Illinois federal court, which has been on ice for a year during the appeal, to move forward. The plaintiffs claim their payment card details were compromised in the 2013 breach of Neiman Marcus systems that affected a proposed class of 350,000 customers, saying the retailer cut corners on security measures that could have prevented or mitigated the breach and didn’t give them timely notice of the attack.

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