Seventh Circuit holds that risk of future fraudulent charge on credit card sufficient to withstand motion to dismiss

During the 2013 holiday season, Neiman Marcus, like many other retailers, discovered that its payment card systems had been compromised and customers’ credit and debit card information was potentially stolen. The rush to the courthouse began, and multiple class action lawsuits were filed and later consolidated in the Northern District of Illinois under the caption Remijas v. The Neiman Marcus Group, LLC, Case No. 14-cv-1735. Alleged damages included, among others, unauthorized charges on credit and debit cards, the risk of future fraudulent charges and greater susceptibility to identity theft.

Neiman Marcus filed a motion to dismiss the complaint for lack of standing and failure to state a claim. The district court granted the motion to dismiss exclusively on standing grounds, holding that the injuries alleged by plaintiffs were not sufficiently concrete. The plaintiffs appealed. On July 20, 2015, the Seventh Circuit reversed, holding that the plaintiffs had shown a substantial risk of immediate harm sufficient to afford them standing to sue. Read more at National Law Review....


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