The U.S. Court of Appeals for the First Circuit last week ruled that consumers who took proactive steps to protect themselves against fraud and identity theft in the wake of the breach may seek compensation for their expenses from Hannaford.
The decision overturns an by a district court in Maine which had held that consumers could not seek compensation from Hannaford because their alleged injuries stemming from the breach were too speculative and unforeseeable.
The ruling is noteworthy because "up until this point, many if not most courts have dismissed these consumer class actions on the basis that consumers did not have standing or the damages were too speculative," said Scott Vernick, an attorney with Fox Rothschild LLP in Pittsburgh.
But it would be a mistake to read too much into it because the decision pertains to a somewhat specific set of circumstances, he added.
A Hannaford spokesman said the company does not want to comment on the ruling because there are still some issues under litigation.