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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