Neiman Marcus Settles Class Action Lawsuit for $1.6 Million

March 20, 2017, Written By Lynn Oldshue
Neiman Marcus Settles Class Action Lawsuit for $1.6 Million

Neiman Neiman Marcus has agreed to settle a class action lawsuit for $1.6 million.

The lawsuit, filed due to a December 2013 data breach that exposed the credit card information of 350,000 shoppers, alleged that affected customers were inconvenienced by the breach and had to spend time and money monitoring their credit reports after the incident.

Much like attacks on Target and Home Depot, criminals were able to install malware on Neiman Marcus terminals, which they could then use to steal the credit card information of shoppers. Anyone who paid with a debit or credit card at Neiman Marcus between July 16, 2013 to January 10, 2014 could have been affected.

The settlement comes after a report from The New York Times earlier this month that indicates Neiman Marcus may be sold to the Hudson’s Bay Company, a Canadian retailer which already owns Saks Fifth Avenue and Lord & Taylor. According to the report, Neiman Marcus currently carries $5 billion in debt.

Hudson’s Bay Company is facing its own problems today, as a number of sources, including BuzzFeed News, are reporting that tens of thousands of Saks Fifth Avenue shoppers have had their personal information made publicly available online. Apparently, shoppers’ names, email addresses, phone numbers and IP addresses were posted on plain text webpages.

The company took down the information after BuzzFeed reported the issue, and a company representative said, “We want to reassure our customers that no credit, payment or password information was ever exposed. The security of our customers is of utmost priority, and we are moving quickly and aggressively to resolve the situation, which is limited to a low single-digit percentage of email addresses. We have resolved any issue related to customer phone numbers, which was an even smaller percent.”

The information contained within this article was accurate as of March 20, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
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