Flagstar Bank Agrees to $31.5 Million Settlement After Data Breaches

Flagstar Bank has reached a settlement agreement to resolve a class action lawsuit stemming from two separate cyberattacks. The bank will provide a $31.5 million fund to compensate customers affected by data breaches that occurred in 2021. These incidents impacted approximately 2.19 million people across the country, including hundreds of thousands of California residents.

Affected individuals may be eligible for up to $25,000 in reimbursement for documented losses, such as fraud or costs related to identity theft. Those without specific losses can expect a cash payment estimated at $60, though this amount could fluctuate based on how many claims are filed. Additionally, participants are set to receive three years of credit monitoring services and identity theft insurance.

Flagstar Bank maintains that it did not commit any wrongdoing, but opted to settle the case to avoid the ongoing expenses of a court battle. Claims must be submitted by August 11, 2026. A final fairness hearing is slated for October 2026, and payments will be issued shortly after the court gives its approval.