Securities Law News

First American Hit With Derivative Suit Over Data Breach

Nov. 30, 2020, 7:00 PM

First American Financial Corp.'s leadership allegedly failed to take the necessary steps to prevent the revelation of information about customers’ mortgages in a data breach, a derivative suit says in federal court in Delaware.

The title insurance and settlement services company’s directors and officers made the company “fail to implement basic security protocols to protect” customer information, according to the shareholder derivative suit filed in the U.S. District Court for the District of Delaware.

That failure “expose[d] millions of First American customers to an increased risk of cyber-fraud and identity theft,” the complaint says. The company’s share price fell more...

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