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Posts by: Raija Horstman

Does Free Credit Monitoring Do More “Harm” Than Good?

The Seventh Circuit reinstates the Neiman Marcus data breach class action lawsuit after finding that increased risk of future fraudulent charges and greater susceptibility to identify theft are sufficient for standing.

Last week, the Seventh Circuit revived the Neiman Marcus data breach class action in an opinion that not only distinguished the Supreme Court’s Clapper decision, but, did something no court has done previously:  turned the company’s offer of free credit monitoring and identity protection services into evidence that consumers’ fear of injury from this breach is not too “speculative” to halt litigation.  This grave development should be carefully considered by companies in planning and responding to data breaches.

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