Flagstar Bank Customers Advance Suit Over Accellion Data Breach

Flagstar Bank FSB must face some claims of a proposed class action alleging it negligently failed to protect the personal information of more than 1.4 million customers and employees in a 2021 data breach linked to Accellion Inc.'s file-transfer software.

The plaintiffs’ allegation that the bank’s recklessness was sufficient to establish the “intent” element of the tort of public disclosure of private facts would be best resolved on summary judgment rather than at the motion-to-dismiss stage, Judge Matthew F. Leitman of the US District Court for the Eastern District of Michigan said Thursday.

They also sufficiently alleged that the disclosure ...