Flagstar class action alleges bank failed to safeguard customer information in data breach

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Flagstar data breach class action lawsuit overview: 

• Who: Scott Temple filed a class action lawsuit against Flagstar Bancorp Inc. and Flagstar Bank FSB. 
• Why: Temple claims Flagstar failed to protect the personally identifiable information of its customers during a December 2021 data breach. 
• Where: The class action lawsuit was filed in Michigan federal court. 

Flagstar Bank failed to secure the private and personally identifiable information (PII) of around 1.5 million of its customers during a December 2021 data breach, a new class action lawsuit alleges. 

Plaintiff Scott Temple claims Flagstar failed to “implement and maintain reasonable and adequate security measures to secure, protect and safeguard their PII against unauthorized access and disclosure.” 

“As a result of Flagstar’s inadequate security and breach of its duties and obligations, the Data Breach occurred, and Plaintiff’s and Class members’ PII was accessed and disclosed,” the class action states.

Flagstar class action alleges bank ‘owed a duty’ to protect customer PII

Flagstar “owed a duty” to its customers to protect their PII, yet failed to do so by allowing the breach to occur, the Flagstar class action alleges. 

Further, Temple argues Flagstar waited more than six month after the breach to begin notifying government agencies and the public directly it had occurred. 

To this day, Flagstar still has not posted a notice about the breach on its official website, according to the Flagstar class action. 

Flagstar customer information accessed by unauthorized persons in the breach included “at least their names and Social Security numbers,” according to the Flagstar lawsuit. 

Temple claims Flagstar is guilty of negligence, unjust enrichment and breach of implied and express contract, among other things, and in violation of the Utah Consumer Sales Practices Act.

He demands a jury trial and requests declaratory and injunctive relief along with monetary, statutory and punitive damages for himself and all class members. 

Temple wants to represent a nationwide class of individuals who had their PII accessed by unauthorized persons during the Flagstar data breach in December 2021. 

A consumer filed a separate class action lawsuit against Flagstar in March by a consumer claiming negligence by the bank and its then-file transfer service Accellion led to a “massive” breach. 

Was your personally identifiable information accessed during the Flagstar data breach? Let us know in the comments! 

The plaintiff is represented by Caleb Marker of Zimmerman Reed LLP; Ben Barnow, Anthony L. Parkhill and Riley W. Prince of Barnow and Associates PC; and Tina Wolfson, Robert Ahdoot and Andrew W. Ferich of Ahdoot & Wolfson PC. 

The Flagstar data breach class action lawsuit is Temple v. Flagstar Bancorp Inc., et al., Case No. 2:22-cv-11395, in the U.S. District Court for the Eastern District of Michigan.

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