Last week, an Illinois judge preliminarily approved a $1.6 million settlement between Neiman Marcus and a class of customers affected by a 2013 data breach. The settlement, which the parties agreed to in March, covers U.S. residents whose credit card or debit card was used between July 16, 2013 and January 10, 2014 at any Neiman Marcus store. Any such customers who file a claim will receive up to $100, with the four class representatives receiving $2,500 each. The settlement does not require Neiman Marcus to take any specific security-related measures.

The 2013 data breach, which was the result of malware installed in Neiman Marcus’s computer system, potentially exposed approximately 370,385 cards. Approximately 9,200 of these were later used fraudulently. The suit was filed in March 2014 and was initially dismissed for a lack of standing in September 2014. The Seventh Circuit later revived the case, finding that any costs for fraud prevention such as credit monitoring were sufficient to establish standing.

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Photo of Jeffrey L. Poston Jeffrey L. Poston

Jeff Poston is a partner in Crowell & Moring’s Washington, D.C. office, where he serves as co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and is a member of the Litigation Group. A seasoned trial lawyer with more than 25 years…

Jeff Poston is a partner in Crowell & Moring’s Washington, D.C. office, where he serves as co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and is a member of the Litigation Group. A seasoned trial lawyer with more than 25 years of experience leading investigations and litigation for corporate clients, Jeff counsels and defends clients in complex data protection matters involving class-actions and regulatory enforcement actions, as well as commercial disputes. Jeff also counsels businesses on both domestic and international privacy compliance matters, including the EU General Data Protection Regulation (GDPR), and the California Consumer Privacy Act (CCPA).

Photo of Brandon C. Ge Brandon C. Ge

Brandon C. Ge is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Privacy and Cybersecurity and Health Care groups.

Brandon advises clients on a wide range of privacy and cybersecurity laws, regulations, and standards.

Brandon C. Ge is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Privacy and Cybersecurity and Health Care groups.

Brandon advises clients on a wide range of privacy and cybersecurity laws, regulations, and standards. His practice has a particular focus on advising clients – from start-up digital health companies to large health plans – on all aspects of compliance with the Health Insurance Portability and Accountability Act (HIPAA). Brandon regularly assists clients with responding to security incidents and has successfully represented clients in Office for Civil Rights investigations.