Breach, Compliance Management, Data Security, Privacy

Federal court dismisses Michaels class action suit

A federal court last week dismissed a class action suit over a data breach at Michaels Stores Inc. because the plaintiffs couldn't show harm.

Although it did not confirm the breach that ultimately affected millions of payment cards until April 2014, the arts and crafts retailer alerted customers in January of that year that some payment cards may have incurred fraudulent activity.

In a December ruling U.S. District Judge Joanna Seybert tossed the case, saying it didn't meet the standard of showing impending injuries or a “substantial risk that the harm will occur.”

Seybert said any liability for fraudulent charges on defendant Mary Jane Whalen's card would have been absorbed by the card issuer and that, among other things, she “failed to allege how her credit card information or PII became less valuable after the Security Breach.”

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