Flagstar Bank To Hand Out $31,500,000 To Settle Class Action Lawsuit Filed Over Data Breach
Flagstar Bank will pay $31.5 million to settle a class action lawsuit following two data breaches affecting millions.Summary
Flagstar Bank has reached a proposed $31.5 million settlement to resolve class action claims arising from two cyberattacks in 2021. The breaches compromised the personal information of approximately 2.19 million individuals nationwide, including 364,000 California residents. While the bank denies any wrongdoing, it agreed to the settlement to avoid the costs of prolonged litigation.
Eligible class members can seek reimbursement for documented losses, such as identity theft or fraud, up to $25,000. Those without specific losses may receive a residual cash payment, estimated at approximately $60. Additionally, participants are eligible for three years of credit monitoring and up to $1 million in identity theft insurance. California residents are entitled to an additional statutory payment of up to $100.
Claims must be submitted by August 11, 2026, through the official settlement website. Following a final fairness hearing in October 2026, approved payments will be distributed via methods including checks and digital payment apps like PayPal, Venmo, or Zelle.
(Source：The Daily Hodl)