Flagstar Bank Settles Data Breach Class Action for $31.5 Million

Flagstar Bank has agreed to a proposed class action settlement amounting to $31.5 million to address claims stemming from two separate cyberattacks that exposed the personal information of approximately 2.19 million customers. The breaches occurred in January and December of 2021, affecting around 364,000 residents in California.

Under the terms of the settlement, eligible class members can seek reimbursement of up to $25,000 for documented losses related to fraud or identity theft. Those without specific losses may receive a residual cash payment estimated at around $60, with potential for higher amounts based on the volume of claims. Additionally, participants will receive three years of credit monitoring services and identity theft insurance coverage of up to $1 million. California residents may also qualify for an extra statutory payment of up to $100.

This settlement arises from the case Angus et al. v. Flagstar Bank, N.A., filed in the U.S. District Court for the Eastern District of Michigan. Although Flagstar denies any wrongdoing, they opted for this resolution to avoid the costs associated with prolonged litigation. Claims must be submitted by August 11, 2026, through the official settlement website, with a final fairness hearing scheduled for October 2026. Payments will be distributed through various methods, including checks and payment apps like PayPal, Venmo, or Zelle.