idRADAR reports that (no surprise) Neiman Marcus has moved to dismiss a potential class action lawsuit stemming from its recently disclosed data breach.
Unlike other lawsuits where lead plaintiffs haven’t even experienced any fraudulent use of their data, the plaintiff in this case had incurred fraudulent charges on her card – which she attributes to the Neiman Marcus breach. But because of the card issuer’s zero liability assurances, Neiman Marcus was able to argue in its motion to dismiss that she has not experienced any unreimbursed harm, and therefore has no standing.
I hope her attorney has raised the issue about unreimbursed cost I describe at
http://hal2020.com/2014/01/03/data-breaches-are-a-big-deal/
Most courts have rejected the arguments for the kinds of unreimbursed costs you describe. So you’re right, it’s a big deal for consumers, but such claims generally don’t prevail in litigation.
The recent Neiman Marcus data compromise appears to reveal a desperate state of affairs under Karen Katz
Despite EEOC laws in America the company has not actively addressed the following:
Customers and employees are said to “act like Jews” .
Asian Americans are said to look “extra Asian ” by its own Management.
Entire Departments may have no Latino employees for years despite having qualified applicants.
The company’s HR department apparently attempts to conceal this by hiring low level janitorial positions. This may be used to skirt equal opportunity..
Management has called gay male employees “Fags” .
” Fire him he has HIV” was stated by a different Department Manger
That employee working in the N.M. Café would prepare food without gloves. He used unwashed hands and cut fingers.
The company has a questionable food safety record . It may not have followed food safety laws and perhaps does still not.
A Neiman Marcus employee bled in prepared food through an open wrist bone wound.. When asked by The United States Government to respond, the company stated they are not applicable under the law. OSHA in Washington D.C was notified . The company never directly answered as to why it did not adequately protect its customers. The company shifted the blame to Liberty Mutual Insurance who had at that point not been aware.
In another recent publicized case Neiman Marcus was implicated in forging fake documents to smear an African American ex employee . This pattern of discrimination is very disturbing . Another abusive tactic Neiman Marcus utilizes is to have suspected African American’s shoplifting cases moved to different judges courts. . This according to company Management allows an increase in the time they spend in jail . The company reportedly pays the Court to honor its request to switch judges it deems as not sympathetic to Neiman Marcus. The United States Department of Justice has been made aware of this.
Additional concerns include that the company has failed to pay wages properly and is known for retaliatory issues (Neimanmarcuslawsuit.com)
It now has another pending class action lawsuit for the data compromise.
The company claimed that one of it’s former manager’s is a “pedophile”. Interestingly they gave him a positive reference to work at Chuckie Cheese Pizza (Owned by Apollo Management). This despite the fact it is a business aimed at children where a danger may be present.
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Ms. Katz should seriously consider resigning as it is questionable as to her stewardship of Neiman Marcus
Sources – DOL, OSHA, U.S Dept. of Justice complaint., EEOC records,