Flagstar Bank To Hand Out $31,500,000 To Settle Class Action Lawsuit Filed Over Data Breach

Flagstar Bank has reached a proposed class action settlement to resolve claims over two separate cyberattacks that compromised customer data.

The agreement establishes a $31.5 million fund to compensate affected individuals, reports USA Today.

The breaches occurred in January 2021 and December 2021, exposing personal information belonging to approximately 2.19 million people nationwide, including about 364,000 California residents.

Eligible class members can seek reimbursement of up to $25,000 for documented losses such as fraud or identity theft costs.

Those without specific losses may receive a residual cash payment estimated around $60, with the possibility of higher amounts depending on claims volume.

Participants also qualify for three years of credit monitoring services along with up to $1 million in identity theft insurance coverage.

California residents stand to receive an additional statutory payment of up to $100 under the terms.

The settlement stems from the case Angus et al. v. Flagstar Bank, N.A., filed in the U.S. District Court for the Eastern District of Michigan.

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