Following the cyberattack that affected the retailer for a month, Marks & Spencer is reportedly facing a multimillion-pound lawsuit over the loss of customer data.
It acknowledged earlier this month that customer information, including names, email addresses, postal addresses, and dates of birth, had been stolen by hackers. Chief Executive Stuart Machin stated that the "sophisticated nature of the incident" had allowed access to the data, although he emphasised that it does not include account passwords or payment and card information, which M&S claims it does not store on its servers.
According to The Sunday Mail, Thompsons Solicitors is now pursuing a class action lawsuit against M&S for exposing customers to the risk of scams by failing to safeguard their data.
Senior Partner Patrick McGuire of Thompsons Solicitors stated that the firm has been "inundated by Scots M&S clients who have been caught up in this online heist and are contacting Thompsons. We have a situation here where one of the most famous retailers in the UK has allowed criminals to pillage the personal details of hundreds of thousands of Scottish customers. I think this will be the biggest data theft case we have ever been involved in.”
Investors will be expecting that Marks & Spencer will provide further information on the impact of the disastrous cyber assault that has interrupted all online orders at the retail giant. On Friday, the company will provide an update to the stock market on its financial performance over the past year. However, emphasis will be focused on how the company is dealing with weeks of interruption. It's been a month since the retailer was hit by a major "cyber incident" allegedly tied to hacking organisation Scattered Spider.
As a result, the company has suspended online orders for the past three weeks, and payments and click-and-collect orders have also been affected. M&S's store availability was also impacted by the outage, resulting in some bare shelves as it replaced elements of its IT systems, but said it was recovering swiftly in an update last Thursday.
Its stores have remained open, and availability is "now in a much more normal place, with stores well stocked this week". The retailer is yet to reveal the financial cost of the incident, although it is believed to have lost tens of millions of pounds in sales.
Analysts at Barclays believe the cyber attack might cost £200 million in the fiscal year 2025/26, but this will be mitigated by an insurance payout of roughly £100 million. The attack struck the business following an excellent run under Stuart Machin's leadership, with shares reaching a nearly nine-year high last month before falling recently.
