Billion-Dollar Bank To Hand Out up to $25,000 per Customer in Settlement Over Data Breach That Impacted 2,187,170 Americans

A top US bank is preparing to handout up to $25,000 per victim of two data breaches to settle a class-action lawsuit.

Flagstar Bank, N.A., has agreed to a proposed $31.5 million settlement to compensate the 2.18 million Americans whose personal information was comprised in data breaches that occurred more than four years ago.

Flagstar says that in January 2021 hackers infiltrated a file sharing platform that is used by the bank and accessed the personally identifiable information of more than a million consumers. In a separate incident in December 2021, the bank says cyber criminals infiltrated Flagstar’s network and accessed the personally identifiable information of another approximate one million individuals.

A class-action lawsuit was filed against Flagstar on behalf of the impacted bank consumers in the United States District Court for the Eastern District of Michigan.

Settlement class members are eligible to receive up to $25,000 for documented losses that arose as a result of the data breach, including fees for attorneys, accountants and credit repair services.

An alternative cash payment of an estimated $60, or $100 if a resident of California, will also be provided, where settlement class members will not be required to provide proof of losses.

The deadline to submit a claim form is August 11th. The court is expected to give final approval of the settlement on October 1st.

As part of the settlement, Flagstar denies having done anything wrong.

Flagstar Bank, N.A., is headquartered in Hicksville, New York, and has $87.1 billion of assets under management.

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