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Decision accents evolution of breach lawsuits

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July 30, 2015

Last week the U.S. Seventh Circuit Court has overturned a previous decision by a lower court. The lower court had determined that plaintiffs in a class action lawsuit against Niemen Marcus did not have standing because they could not demonstrate harm. The Seventh Circuit Court concluded the plaintiffs did have standing, regardless of any demonstration of harm.

According to NAID CEO Bob Johnson, this is a “very big deal” since the absence of demonstrable harm had been the Achilles Heel of the vast majority of similar class action suits in the past. It is further evidence of the trend pointed out in an article by Johnson published in the journal of the International IT Asset Manager Association last year. In the article, Johnson predicted such decisions were inevitable and would soon raise the consequences of data breaches to the point that prevention would be a critical survival imperative.