Million-dollar lawsuit threatens Marks & Spencer after cyber attack

Scottish customers whose personal data were stolen in the recent cyber attack on Marks & Spencer are taking the retailer to court. That could lead to a multi-million-pound claim.

Major financial impact

The cyber-attack that hit Marks & Spencer at the end of April could have huge financial consequences. Not only was the retailer unable to process online orders for three weeks and there were empty shelves in some of its shops, but now law firm Thompsons Solicitors is also launching a class action claim against the retailer on behalf of affected Scottish customers.

According to partner Patrick McGuire, the chain exposed its customers to criminal scams by failing to protect their data – which it is legally obliged to do. “M&S pride themselves on their customer service and reliability but in this most important area they have failed their customers completely.”

The attack took place just after the close of the previous financial year and so will have no impact on the – expectedly strong – annual figures the retailer publishes on Wednesday. However, the impact on the first quarter of the current financial year will be significant. The retailer already lost 1.2 million pound (1.4 million euros) in stock market value. CEO Stuart Machin could potentially lose more than a million pounds in share plans and bonus income as a result of the hack.