What Is the Flagstar Bank Data Breach Settlement?
A federal class action settlement has been reached in Angus, et al. v. Flagstar Bank, N.A., Case No. 2:21-cv-10657-MFL-DRG, pending in the United States District Court for the Eastern District of Michigan. The settlement resolves claims related to two separate data breaches that occurred at Flagstar Bank in January 2021 and December 2021, collectively impacting the personal information of approximately 2,187,170 individuals across the United States.
Flagstar Bank has agreed to establish a $31,500,000 Settlement Fund to compensate affected consumers. Flagstar denies any wrongdoing, and no court has made a determination of liability. The settlement was reached following mediation overseen by a retired federal judge.
What Happened in the Flagstar Data Breaches?
On March 5, 2021, Flagstar announced it had been the victim of a cyberattack in January 2021, in which criminals infiltrated a file-sharing platform and accessed the personally identifiable information (PII) of approximately 1.47 million individuals. On June 17, 2022, Flagstar disclosed a second cyberattack from December 2021, in which criminals accessed the PII of approximately 1.58 million individuals. Together, these breaches impacted roughly 2,187,170 U.S. consumers, including approximately 364,000 California residents.
Plaintiffs allege that Flagstar failed to adequately protect consumers' personal information and delayed notifying affected individuals about the breaches. The case is overseen by Judge Matthew F. Leitman of the Eastern District of Michigan.
Who Is Eligible to File a Claim?
You are a Settlement Class Member if you are among the approximately 2,187,170 U.S. consumers identified by Flagstar whose personal information was impacted by either or both of the 2021 data breaches. The settlement includes a Nationwide Settlement Class and a California Settlement Class for the approximately 364,000 California residents affected.
Excluded from the class are Flagstar employees, officers, directors, legal representatives, and any judge or judicial officer presiding over the case, as well as anyone who validly opts out of the settlement.
What Benefits Are Available?
Settlement Class Members who submit a valid claim form may be eligible for one or more of the following benefits:
- Documented Monetary Losses Reimbursement: Up to $25,000 for out-of-pocket expenses fairly traceable to the data breaches, including unreimbursed fraud or identity theft losses, professional fees, credit freeze costs, credit monitoring costs, and miscellaneous expenses such as postage, mileage, and notary fees. Documentation is required.
- Residual Cash Payment: Estimated at approximately $60, but potentially up to $599, available to all class members who submit a valid claim. The exact amount is determined pro rata based on remaining funds after other payments.
- Three Years of Credit Monitoring Services: Three-bureau credit monitoring services provided at no cost to eligible claimants.
- California Statutory Payment: Up to $100 for California residents who resided in California at the time of the data breaches, available upon attestation under penalty of perjury.
Key Dates and Deadlines
- Claims Deadline: August 11, 2026
- Exclusion (Opt-Out) Deadline: June 29, 2026
- Objection Deadline: June 29, 2026
- Final Approval Hearing: October 1, 2026 at 9:30 a.m. ET
Frequently Asked Questions (FAQ)
Q: How do I know if I am part of the settlement?
A: You are a class member if you are among the approximately 2,187,170 U.S. consumers identified by Flagstar whose personal information was impacted by the January 2021 or December 2021 data breaches. Notice was sent via email and/or direct mail to all identified class members. If you are unsure, contact the Settlement Administrator at 1-855-542-0397 or email [email protected].
Q: Do I need my Claim ID to file?
A: Yes. If you received an email notice, your Settlement Claim ID is located above your name at the top of the email. If you received a postcard notice by U.S. mail, your Claim ID is on the postcard above your name and address. You will need this ID to submit your claim online.
Q: What if I don't have documentation of my losses?
A: If you cannot document specific monetary losses, you may still file a claim for the Residual Cash Payment (estimated ~$60) and/or Credit Monitoring Services without submitting loss documentation. California residents may also claim the California Statutory Payment with only an attestation of residency. Only the Documented Monetary Losses benefit (up to $25,000) requires supporting documentation.
Q: What happens if I do nothing?
A: If you do nothing, you will remain part of the settlement class but will receive no benefits. You will also give up your right to sue, continue to sue, or be part of another lawsuit against Flagstar related to the claims resolved by this settlement.
Q: Can I opt out of the settlement?
A: Yes. You may exclude yourself from the settlement by the opt-out deadline of June 29, 2026. Opting out is the only way to preserve your right to bring your own lawsuit against Flagstar for the same claims. If you opt out, you will not receive any settlement benefits.
Q: How much will I actually receive?
A: The Residual Cash Payment is estimated at approximately $60 per claimant but could be higher (up to $599) or lower depending on the total number of valid claims submitted. If you have documented out-of-pocket losses traceable to the breaches, you may claim up to $25,000 with supporting documentation. California residents may receive an additional statutory payment of up to $100.