Seventh Circuit Finds Article III Standing for Data Breach Class Action Based on Allegations of Future Harm

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In the wake of numerous data breach cases dismissed for lack of Article III standing based on the Supreme Court’s decision in Clapper v. Amnesty Int’l USA, 133 S. Ct. 1138, 1147 (2013), the Seventh Circuit Court of Appeals has become the first post-Clapper appellate court to hold that data breach victims adequately alleged standing based on risks of future harm. In Remijas v. Neiman Marcus Group, LLC, --- F.3d ----, 2015 WL 4394814, Case No. 14-3122 (7th Cir. July 20, 2015) (“Remijas”), the district court dismissed a class action complaint against retailer Neiman Marcus based on the plaintiffs’ lack of Article III standing. Plaintiffs appealed, and the Seventh Circuit reversed. The decision adds a new element of uncertainty for custodians of customer data impacted by data breaches.

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