Flagstar Bank Faces Second Suit Over Hack Affecting 1.5 Million

Flagstar Bank should be held liable for failing to adequately secure consumer data exposed following a pair of 2021 hacks, according to a proposed class action filed in California federal court.

The Michigan-based bank and mortgage lender was negligent in meeting industry security standards, resulting in the two data breaches—the second of which affected over 1.5 million customers, the lawsuit filed Monday in the US District Court for the Northern District of California said.

Flagstar customer information was first exposed after its third-party file sharing platform was breached in January 2021, according to the complaint. The bank’s network was hacked ...