By Ashley Robinson A proposed $31.5 million settlement
Flagstar Bank has agreed to a proposed $31.5 million class-action settlement over claims arising from two data breaches in 2021. The lawsuit is Angus, et al. v. Flagstar Bank, N.A., pending in the U.S. District Court for the Eastern District of Michigan. Plaintiffs allege that Flagstar did not adequately protect personal information and delayed notice after the breaches. Flagstar denies the allegations, denies liability, and has not admitted wrongdoing.
What happened in the 2021 breaches
The settlement concerns cyberattacks affecting Flagstar systems in January and December 2021. The incidents exposed personal information belonging to approximately 2,187,170 people in the United States, according to the official settlement materials. The lawsuit focused on allegations about the protection of sensitive data and the notice provided after the incidents. The settlement is meant to resolve these disputed claims for people identified by Flagstar as affected, while allowing the bank to continue denying the legal allegations against it.
Who is eligible to make a claim
The class includes U.S. consumers whom Flagstar identified as having personal information impacted by one or both breaches. Notices were sent by email or direct mail to known class members. A notice normally contains the Unique Class Member ID needed to submit a claim. Eligibility depends on whether Flagstar identified the person as affected. Flagstar, related entities and personnel, judges connected with the case, and people who validly excluded themselves are not included. Anyone uncertain about eligibility should use only the official settlement contact information.
Payments and services offered
Eligible class members may seek reimbursement for documented monetary losses fairly traceable to the breaches, up to $25,000. Examples can include unreimbursed fraud or identity-theft losses, certain professional fees, credit-freeze expenses, credit-monitoring costs, and reasonable related charges such as postage or mileage. Supporting records are required; self-prepared receipts alone are not enough. Claimants may also request a residual cash payment, estimated at about $60 and capped at $599, subject to the fund, the number of valid claims, and the settlement’s calculation rules. California class members may request a statutory payment of up to $100. The settlement also offers three years of credit-monitoring and identity-protection services.
Why the payment amount can change
A $31.5 million settlement fund does not mean each eligible consumer will receive the same amount. Before residual cash payments are calculated, the fund may be used for court-approved attorneys’ fees and expenses, service awards, notice and administration costs, credit-monitoring services, and valid documented-loss claims. The official notice states that some benefits can be reduced proportionally if claims exceed the available money. In certain circumstances, documented-loss and California statutory claims could be reduced and there may be no residual cash payment. For that reason, the estimated cash amount should not be treated as a promise or a fixed individual payout.
Deadline, approval, and payment timing
The deadline to submit a claim is August 11, 2026. Claims must be submitted online by that date or mailed with a postmark no later than that date. The deadlines to opt out or object were June 29, 2026. The court is scheduled to hold a final-approval hearing on October 1, 2026, at 9:30 a.m. Eastern Time by Zoom. No settlement payment is due right away. Payments can be issued only if the court grants final approval and after any appeals have been resolved. The claims administrator must also review submitted claim forms, which can take additional time. Processing can therefore take several months after the court hearing ends.
How to file safely
Consumers should visit FlagstarSettlement.com, the official settlement website, rather than rely on social-media posts, unfamiliar links, or firms promising a fee-based claim service. A valid claim may require the Unique Class Member ID from the notice and, for loss reimbursement, documents such as bank statements, invoices, receipts, or other reliable records. Keep copies of everything submitted. Questions can be directed to the Flagstar Settlement Administrator at 1-855-542-0397. Remaining in the settlement may release related claims against Flagstar and other released parties; opting out was the route for keeping an individual lawsuit, but that deadline has passed. This article is general information, not legal advice.