A major US bank is preparing to distribute up to $25,000 to each data breach victim to settle a class action lawsuit.
Flagstar Bank, N.A., has Agreed to a proposed $31.5 million settlement to compensate 2.18 million Americans whose personal information was included in data breaches that occurred more than four years ago.
In January 2021, hackers infiltrated the file-sharing platform used by the bank and accessed the personally identifiable information of more than 1 million consumers, Flagstar says. In a separate incident in December 2021, the bank said cybercriminals infiltrated the Flagstar network and accessed the personally identifiable information of nearly 1 million other individuals.
A class action lawsuit has been filed against Flagstar on behalf of affected bank customers in the United States District Court for the Eastern District of Michigan.
Members of the settlement class are eligible to recover 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.
A replacement cash payment of $60, or $100 if a California resident, will also be provided, as settlement class members will not be required to provide proof of losses.
The deadline to submit the claim form is August 11. The court is expected to give final approval to the settlement on October 1.
As part of the settlement, Flagstar denies any wrongdoing.
Flagstar Bank is headquartered in Hicksville, New York, and has $87.1 billion in assets under management.
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