Neiman Marcus breach probed by states; Target sued by bank

Bloomberg NewsJanuary 15, 2014 

NEW YORK -- Neiman Marcus Group Ltd. is being investigated by states including Connecticut and Illinois over the theft of customer credit-card data by hackers, and a bank sued Target Corp. for its data breach during the holiday season.

Connecticut Attorney General George Jepsen and Illinois Attorney General Lisa Madigan, whose offices are already leading a multistate investigation in the Target breach, are also looking into the hack of Dallas-based Neiman Marcus, which said on Jan. 10 that some unauthorized purchases may have been made with credit cards.

The two breaches complicate matters for retailers already struggling to attract hesitant shoppers and cutting forecasts after engaging in a margin-eating price war during the holiday shopping season.

"At this point we cannot speak for any other states, but Connecticut will be looking into the Neiman Marcus breach and, to the extent that we become aware of breaches at other retailers, we will be looking those as well," Jaclyn Falkowski, a spokeswoman for Jepsen's office, said in an email.

Madigan's office is also looking into the Neiman Marcus breach, said her spokeswoman, Maura Possley, in an email. Indiana Attorney General Greg Zoeller is aware of the situation and investigating to determine the extent of harm to consumers in the state, Erin Reece, a spokeswoman for Zoeller, said in an email. Neiman Marcus has five stores in Illinois and none in Connecticut or Indiana, according to its website.

Other states involved in the Target probe include Florida, Iowa, Massachusetts and Pennsylvania, spokespersons for those states' attorneys general confirmed Monday.

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