Neiman Marcus class action data breach lawsuit revived

A federal appeals court revived a class action lawsuit against Neiman Marcus over the data breach it experienced in 2013, noting in its ruling that 350,000 payment cards were compromised and 9,200 were used fraudulently.

The Seventh Circuit Court of Appeals said a lower court judge made an error by dismissing the case too soon, at the request of the luxury retailer, on the grounds that anyone whose information was used maliciously had already been compensated. The lawsuit alleged that victims who didn't immediately suffer after the breach still faced an increased risk for future criminal use of their data.

Chief Judge Diane Wood said those affected “should not have to wait until hackers commit identity theft or credit-card fraud in order to give the class standing,” according to a release, and added there is an “objective reasonable likelihood' that such an injury will occur.”

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