Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Keeping the Data-Breach Headlines In Perspective

By John Hutchins
October 02, 2015

From the Sony Pictures settlement, to the Ashley Madison debacle, data breaches are making big headlines of late. And when it comes to one case in particular ' the data breach at luxury retailer Neiman Marcus (Remijas v. Neiman Marcus, No. 14-3122 (7th Cir. July 20, 2015)) ' some would-be experts are spinning a misleading, black-and-white storyline. As you may remember, the 2013 data breach exposed the credit card data of 350,000 Neiman Marcus customers. This led to fraudulent charges occurring in 9,200 of those customer accounts. In short order, a class-action lawsuit followed in which customers sought $5 million in damages. While a district court dismissed the case ' in part because customers had been reimbursed for the false charges in question ' the U.S. appeals court reversed that dismissal in late July.

This ruling, according to the pundits, represented a tipping point toward victims of cyber fraud, and one that, as they saw it, may lead to a wave of successful class-action lawsuits filed across the country. To be sure, data breaches are a significant problem and certainly represent a liability risk. However, let's take a closer look at the precise meaning and context of the Neiman Marcus ruling. Do the pundits truly appreciate the procedural context in which the court reviewed the case? Are they accounting for the most important part of any class-action lawsuit ' class certification?

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.