Flagstar data breach settlement overview:
- Who: Flagstar Bank has reached a $31.5 million settlement with consumers.
- Why: Consumers alleged Flagstar Bank failed to protect their personal information in a 2021 and 2022 data breach.
- Where: The preliminary approval of the settlement was filed in Michigan federal court.
- How to Make a Claim: Details on how to file a claim were not immediately available. Sign up for our free newsletter to receive claim-filing instructions once they’re available, and check out what settlements are paying out this month.
Flagstar Bank has reached a $31.5 million settlement with a group of consumers who claim the bank failed to protect their personal information in two data breaches that occurred in 2021 and 2022.
The plaintiffs filed an unopposed motion for preliminary approval of the settlement on Oct. 1 in Michigan federal court.
The settlement, if approved, would benefit a nationwide class of more than 2.1 million consumers whose personally identifying information was impacted by either or both of the two Flagstar data breaches experienced in 2021 and 2022.
The settlement fund will provide reimbursement for documented monetary losses of up to $25,000, three years of credit monitoring services, California statutory payments of up to $100 and residual cash payments of up to $599.
According to the Flagstar class action lawsuit, the bank announced on March 5, 2021, that cybercriminals infiltrated a file sharing platform used by Flagstar and accessed the personally identifiable information of about 1.47 million individuals in the United States.
Then, on June 17, 2022, Flagstar announced that cybercriminals infiltrated Flagstar’s network and accessed the personally identifiable information of about 1.5 million individuals in the United States.
Flagstar Bank data breach settlement comes after years of litigation
The plaintiffs filed multiple class action lawsuits against Flagstar, which were consolidated in August 2025. The plaintiffs filed a fifth consolidated class action complaint for purposes of effectuating the proposed settlement.
The parties engaged in arm’s-length settlement negotiations beginning in April 2025, including two in-person mediation sessions.
The plaintiffs say the settlement will provide valuable benefits tailored to the facts of the case and is fair in light of the risks of continuing to litigate the case.
Recently, a FinWise Bank data breach exposed the personal information of 689,000 individuals, raising significant concerns among its customers.
What do you think about the Flagstar Bank data breach settlement? Tell us in the comments.
The plaintiffs are represented by John A. Yanchunis of Morgan & Morgan Complex Litigation Group, Norman E. Siegel of Stueve Siegel Hanson LLP and other attorneys.
The Flagstar class action lawsuit is Angus, et al. v. Flagstar Bank N.A., Case No. 2:21-cv-10657-MFL-DRG, in the U.S. District Court for the Eastern District of Michigan.
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5 thoughts onFlagstar Bank agrees to $31.5M payout to settle 2021 data breach class action
add me
We were breached
I closed my account with Flagstar because of the numerous amount a fraud charges and now I have a credit card that I had applied to be on a care program because it’s been a battle paying it off and now that I’m on the program my card is still being used fraudulently. Yes help me it’s ridiculous
You say care program is that the care credit like health related card. If so I had it taken out as well. Care credit, auto loans, trailers, mortgage on my credit. They were 4 years ahead of me. I need assistance please to regain my life back. 712-687-5079
Now, I understand why they’re holding my account up and delaying info about my account. Simple mistakes happen. All I asked was for the funds to be moved from my primary account to my business account. That doesn’t sound hard, but Flagstar will make it sound impossible. Then I get on the phone with customer service of the bank and they tell me that someone from the back office will be calling me, but can’t give no ETA. What kind of business are you all running over there. This bank is something else. I get in contact with someone and the woman makes a weird sound when I said that I day trade like her or the bank has a problem with me trading on my money. Mind you, while all this is going on. My account is on hold or suspension for a reason they still haven’t let me know, yet and it’s been about month now with all the b.s. I’m going through with Flagstar bank. So, last week, some funds are off hold and 2 days later my account is closed which at the actual bank, they told me this. So, where’s my money? Now, when I call customer service… all of a sudden, I have to put in a access code which I’ve never received from the bank. So, basically I can’t talk to anyone about my account. I call the branch. They give me a cell number of someone that works in some back office(I won’t put his name out there, but he reads this, he’ll know what I’m talking about). I called this number and had my lawyer call this number. No one answers this number. So, now here we are on this week. My account is supposed to be closed, but I’m getting notifications from my email stating that my card was denied for $51 in Los Angeles. I’ve never been to Cali in my life.
Now, today… I’m still dealing with the b.s. of Flagstar bank, working on trying find out where’s my money and is my account really closed. They also denied me access to the mobile app and logging in on the website while I can’t talk to anyone.
If anyone can give me some intel on how to get around this b.s. and get things situated. I’d appreciate it.
Help me to Help you!!