May 14, 2021

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Judge Denies Neiman’s Motion to Dismiss Data Breach Class Action

A federal judge in the Northern District of Illinois has denied Neiman Marcus Group LLC’s (“Neiman”) motion to dismiss a consumer class action lawsuit arising from a December 2013 data breach at the retailer that exposed about 350,000 credit cards.  As we previously reported, the plaintiffs sued Neiman alleging various claims arising from fraudulent charges following the data breach.

The district court previously dismissed the suit on the ground that the plaintiffs lacked standing to sue, but that argument was rejected by the Seventh Circuit, and Neiman’s request for rehearing en banc was denied.  Back in the district court, Neiman argued that the court should still dismiss the suit because plaintiffs’ alleged injuries were insufficient to state claims for, among other things, negligence, breach of implied contract, and violations of state data breach notification requirements.

In a brief docket entry, the district court denied the motion to dismiss, stating only that “[d]ismissal is not appropriate at this time.”  The case will therefore proceed on the merits, with a status hearing currently scheduled for February 25th.

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© 2021 Covington & Burling LLPNational Law Review, Volume VI, Number 32
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About this Author

David Bender, data privacy and cybersecurity attorney, Covington Burling
Associate

David Bender is an associate in the firm’s Washington office. He is a member of the Data Privacy and Cybersecurity and Communications and Media practice groups. Mr. Bender advises clients on a broad range of privacy and data security issues regarding the collection, use, and disclosure of information online.

202 662 5822
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