The settlement resolves allegations that Flagstar Bank failed to use reasonable cybersecurity measures that could have prevented the breaches. The incidents occurred in January and December 2021 and allegedly exposed the personally identifiable information of more than two million customers.
Flagstar Bank, which operates more than 340 locations across nine states, did not admit wrongdoing. The bank agreed to settle the lawsuit to avoid the cost of continued litigation.
Eligible Customers Must File by August 11
Consumers may qualify if their personal information was exposed in either of the two 2021 breaches.
According to the website created for the settlement, postcard notices were sent to eligible individuals and included a Settlement Claim ID. That number is needed to submit a claim online or to print and mail a claim form to the Settlement Administrator.
People who did not receive a notice or cannot find their Settlement Claim ID are advised to contact [email protected].
Claims must be filed by August 11, 2026. The deadline to exclude oneself from the settlement or object to its terms passed on June 29, 2026.
A final approval hearing is scheduled for October 1, 2026. Payments are expected to be sent in the months after approval, meaning many class members may not receive money until 2027.
Most Payments Will Range from $60 to $599
Most eligible class members are expected to receive a residual cash payment of between $60 and $599. The amount will depend on the number of valid claims submitted.
California residents may also receive an additional statutory distribution of up to $100. At least 364,000 people affected by the breaches were California residents.
Claimants who provide documentation showing financial losses connected to the data breaches may seek reimbursement of up to $25,000.
According to the settlement details, eligible losses may include fraudulent charges, identity theft damages, professional fees and credit-related costs.
The settlement also provides three years of free credit monitoring services through IDX to all class members.
Those services include $1 million in identity theft insurance, monitoring from all three major credit bureaus, dark web monitoring, identity restoration assistance, member advisory services and lost-wallet support.
The Settlement Ends the Case Without an Admission of Wrongdoing
Class action lawsuits allow people with similar claims to pursue legal action as a group. They are often brought by one or several plaintiffs who allege that a company or other organization harmed a larger group of people.
When a case proceeds as a class action, it can cover all class members whose claims are similar to those raised in the lawsuit.
Companies frequently settle class actions by offering payments or other benefits to eligible members. In return, people who accept settlement benefits generally waive their right to pursue separate legal action over the same claims.
Settlement agreements commonly state that the defendant denies wrongdoing. Companies may still agree to pay in order to avoid further legal expenses.
Class actions can involve allegations related to pollution, discrimination, false advertising and other forms of harm.
The Flagstar Bank agreement comes as other settlements also offer payments to consumers. Certain renters may receive up to $1,000 from a “landlord postcard” settlement without proof, while some YouTube subscribers may qualify for $100 payments through a $50 million auto-renewal settlement.
