Neiman Marcus 2013 Annual Report Download - page 27

Table of Contents
We are currently involved in various other legal actions and proceedings that arose in the ordinary course of business. With respect to the matters
described above as well as all other current outstanding litigation involving us, we believe that any liability arising as a result of such litigation will not have
a material adverse effect on our financial position, results of operations or cash flows.
Cyber-Attack Class Actions Litigation. Three class actions relating to the Cyber-Attack were filed in January 2014 and later voluntarily dismissed
by the plaintiffs between February and April 2014. The plaintiffs had alleged negligence and other claims in connection with their purchases by payment
cards. Melissa Frank v. The Neiman Marcus Group, LLC, et al., was filed in the United States District Court for the Eastern District of New York on January
13, 2014 but was voluntarily dismissed by the plaintiff on April 15, 2014, without prejudice to her right to re-file a complaint. Donna Clark v. Neiman
Marcus Group LTD LLC was filed in the United States District Court for the Northern District of Georgia on January 27, 2014 but was voluntarily dismissed
by the plaintiff on March 11, 2014, without prejudice to her right to re-file a complaint. Christina Wong v. The Neiman Marcus Group, LLC, et al., was filed
in the United States District Court for the Central District of California on January 29, 2014, but was voluntarily dismissed by the plaintiff on February 10,
2014, without prejudice to her right to re-file a complaint. Three new putative class actions relating to the Cyber-Attack were filed in March and April 2014,
also alleging negligence and other claims in connection with plaintiffs’ purchases by payment cards. Two of the cases, Katerina Chau v. Neiman Marcus
Group LTD, Inc., filed in the United States District Court for the Southern District of California on March 14, 2014, and Michael Shields v. The Neiman
Marcus Group, LLC, filed in the United States District Court for the Southern District of California on April 1, 2014, were voluntarily dismissed, with
prejudice as to Chau and without prejudice as to Shields. The third case, Hilary Remijas v. The Neiman Marcus Group, LLC, was filed on March 12, 2014 in
the Northern District of Illinois. On June 2, 2014, an amended complaint in the Remijas case was filed, which added three plaintiffs (Debbie Farnoush and
Joanne Kao, California residents; and Melissa Frank, a New York resident) and asserted claims for negligence, implied contract, unjust enrichment, violation
of various consumer protection statutes, invasion of privacy and violation of state data breach laws. The Company moved to dismiss the Remijas amended
complaint on July 2, 2014. On September 16, 2014, the court granted the Company’s motion to dismiss the Remijas case on the grounds that the plaintiffs
lacked standing due to their failure to demonstrate an actionable injury.
In addition, payment card companies and associations may require us to reimburse them for unauthorized card charges and costs to replace cards and
may also impose fines or penalties in connection with the security incident, and enforcement authorities may also impose fines or other remedies against us.
We have also incurred other costs associated with this security incident, including legal fees, investigative fees, costs of communications with customers and
credit monitoring services provided to our customers. At this point, we are unable to predict the developments in, outcome of, and economic and other
consequences of pending or future litigation or regulatory investigations related to, and other costs associated with, this matter. We will continue to evaluate
these matters based on subsequent events, new information and future circumstances.

Not applicable.




Subsequent to the Acquisition and the Conversion, our membership unit is privately held and there is no established public trading market for such
unit.

We do not expect to make any dividends, distributions or other similar payments to Holdings in the foreseeable future.
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