If you were a Neiman Marcus customer between 2020 and 2021, you may be eligible for a cash payment from a class action settlement. The lawsuit stems from a data security incident that may have exposed the personal information of millions of shoppers. This guide provides a straightforward explanation of the settlement, who qualifies, and the exact steps you need to take to file a claim and receive your benefits.
Understanding the Neiman Marcus Data Breach Settlement
In late 2021, Neiman Marcus Group (NMG) announced that it had been the victim of a data security incident. This breach occurred in May 2020 and resulted in unauthorized access to sensitive customer information. The data involved included names, contact information, and payment card numbers, along with expiration dates and security codes.
Following this incident, several class action lawsuits were filed against the company. The plaintiffs argued that Neiman Marcus failed to implement adequate security measures to protect consumer data. While the company denied any wrongdoing, both parties eventually reached a settlement agreement to resolve the litigation without going to trial.
This settlement is designed to compensate affected individuals for the time they spent addressing the breach and for any financial losses they may have incurred as a result of the data exposure. It also provides a way for customers to hold the company accountable for its data protection practices.
Who Is Eligible to File a Claim?
To receive a payment, you must be a member of the “Settlement Class.” Generally, you are included if you were a customer of Neiman Marcus, Bergdorf Goodman, Last Call, or Horchow and received a notice about the 2020 data breach.
The settlement typically covers individuals residing in the United States whose personal information was compromised. If you received a formal notice via email or traditional mail with a unique Claim ID, you are almost certainly eligible to participate. If you did not receive a notice but believe your information was involved, you may still be able to search for your eligibility on the official settlement portal using your email address or phone number.
Specific Eligibility Criteria
- Notice Recipients: Anyone who received a direct notice from the settlement administrator.
- Data Exposure: Individuals whose names and payment card information were specifically identified as being part of the May 2020 breach.
- Residency: Most class action settlements of this nature are restricted to U.S. residents.
Types of Compensation Available
The settlement offers different types of compensation depending on how the data breach affected you. It is important to understand these categories so you can claim the maximum amount you are entitled to.
Reimbursement for Out-of-Pocket Expenses
If you spent money specifically because of the data breach, you can claim reimbursement. This includes costs such as credit monitoring services, bank fees related to fraudulent charges, or identity theft insurance premiums. You will typically need to provide documentation, such as receipts or bank statements, to support these claims.
Compensation for Lost Time
Many people spent hours monitoring their accounts, calling banks, or resetting passwords after the breach was announced. The settlement allows you to claim compensation for this “lost time.” Usually, this is paid at a set hourly rate (often around $25 per hour) for a limited number of hours. In many cases, you can self-certify a small amount of time without documentation, but larger claims may require a brief description of the actions you took.
California Statutory Claims
Due to specific privacy laws in California, residents of that state may be eligible for an additional statutory payment. This is often a flat fee provided to California residents who were impacted by the breach, regardless of whether they incurred specific financial losses.
Step-by-Step Guide to Filing Your Claim
Filing a claim is a relatively simple process that can be completed online. Follow these steps to ensure your claim is processed correctly.
Step 1: Locate Your Notice and Claim ID
Check your email and physical mail for a notice regarding the Neiman Marcus Group Settlement. This notice contains a unique Claim ID and PIN. Having these numbers makes the process much faster, as it automatically links your claim to your records.
Step 2: Visit the Official Settlement Website
Navigate to the official settlement website. Be careful to use only the official URL provided in your notice to avoid potential scams. Once on the site, look for the “Submit a Claim” or “File a Claim” button.
Step 3: Enter Your Information
If you have a Claim ID, enter it when prompted. If you do not have one, look for the option to file without an ID. You will need to provide your full name, current mailing address, and the email address associated with your Neiman Marcus account.
Step 4: Select Your Compensation Category
Choose the types of compensation you are claiming. If you are claiming out-of-pocket expenses, be prepared to upload digital copies of your receipts or statements. If you are claiming lost time, follow the instructions to indicate how many hours you spent addressing the breach.
Step 5: Choose Your Payment Method
Most modern settlements allow you to choose how you want to be paid. Common options include a digital payment (via PayPal, Venmo, or Zelle) or a traditional paper check mailed to your home. Digital payments are usually processed faster once the settlement is finalized.
Step 6: Review and Submit
Double-check all the information you have provided. Ensure your address is correct and that you have attached all necessary documentation. Once you submit the claim, you should receive a confirmation number. Save this number for your records.
Important Deadlines to Remember
Class action settlements have strict timelines. If you miss a deadline, you lose your right to claim a payment or object to the settlement. While specific dates can change based on court orders, you should keep an eye on the following:
- Claim Filing Deadline: This is the last day to submit your claim form. It is usually several months after the settlement is initially announced.
- Exclusion Deadline: If you wish to sue Neiman Marcus individually for this breach, you must “opt out” or exclude yourself by this date.
- Objection Deadline: If you disagree with the terms of the settlement, you must file a formal objection by this date.
- Final Approval Hearing: The date the court decides whether to officially approve the settlement. Payments are only sent out after this hearing and after any potential appeals are resolved.
What Happens After You File?
Once you submit your claim, the settlement administrator will review it for validity. This process can take several months. If there are issues with your claim, such as missing documentation, the administrator may contact you for more information.
Payments are not distributed immediately. They are typically sent out 60 to 90 days after the court grants final approval and all appeals are exhausted. Because legal processes can be slow, it is common for payments to arrive six months to a year after the initial filing deadline.
Conclusion
The Neiman Marcus settlement provides an important opportunity for affected customers to recover losses and receive compensation for their time. By following the steps outlined above and keeping an eye on the deadlines, you can ensure that you receive the benefits you are owed. If you believe you were impacted, take a few minutes today to check your eligibility and submit your claim. For more information on protecting your digital identity and staying informed about consumer rights, explore our other articles on data privacy and online security.