People identified as affected by two 2021 Flagstar Bank data breaches may qualify for benefits from a proposed $31.5 million class action settlement.
The court-authorized settlement website says the breaches affected approximately 2,187,170 people in the United States, including approximately 364,000 California residents.
Claim forms had to be submitted online or postmarked by August 11, 2026. The official settlement website marks that deadline as passed as of August 26, 2026, so this draft should not be published as an open-claims article.
Who may qualify for the Flagstar settlement
The settlement class covers U.S. consumers identified by Flagstar whose personal information was impacted by the bank's January 2021 or December 2021 data breaches.
The settlement administrator sent notice by email or mail to identified class members. People who are unsure whether they are included can contact the administrator using the information on the official settlement website.
Receiving a notice does not guarantee payment. A claimant must submit a valid claim by the deadline, and the settlement administrator will decide whether the claim satisfies the court-approved requirements.
What benefits are available
Settlement class members who file valid, timely claims may request one or more of the following:
- Up to $25,000 for documented monetary losses fairly traceable to the data breaches;
- a residual cash payment estimated at $60, capped at $599;
- three years of three-bureau credit monitoring, including identity-theft insurance and restoration services; and
- up to $100 for qualifying California residents who lived in California at the time of the breaches.
The documented-loss benefit may cover eligible unreimbursed fraud or identity-theft losses, professional fees, credit-freeze costs, credit-monitoring expenses, and certain related out-of-pocket costs. Supporting documentation is required for this benefit.
The estimated $60 residual payment may be higher or lower depending on approved settlement costs and the number and value of valid claims. Other cash benefits may also be reduced if approved claims exceed the money available.
How to submit a claim
Class members can file online through the court-authorized settlement website using their Settlement Claim ID. They can also submit a paper claim form by mail.
The claim deadline was August 11, 2026. Online claims had to be completed by that date, and mailed claims had to be postmarked by that date. The deadline has passed.
People requesting documented-loss reimbursement should follow the administrator's instructions and include the required third-party records. The shorter tear-off form sent with some notices is not sufficient for documented-loss claims.
What happened in the Flagstar data breaches
The official settlement materials state that Flagstar announced in March 2021 that attackers had infiltrated a file-sharing platform used by the bank in January 2021 and accessed personal information belonging to approximately 1.47 million people.
Flagstar announced a separate incident in June 2022 involving unauthorized access to its network in December 2021. The settlement materials state that incident affected approximately 1.58 million people.
Because some people may have been affected by both events, the combined settlement class contains approximately 2.19 million people rather than the sum of both incident counts.
What the lawsuit alleged
The case is Angus, et al. v. Flagstar Bank, N.A., Case No. 2:21-cv-10657-MFL-DRG, in the U.S. District Court for the Eastern District of Michigan.
The plaintiffs alleged that Flagstar failed to adequately protect consumers' personal information and delayed notifying affected people about the breaches.
Flagstar denies wrongdoing. The court has not found Flagstar liable, and the proposed settlement is not an admission that the bank violated the law.
When will payments be sent?
The court has scheduled a final approval hearing for October 1, 2026. Payments and credit-monitoring enrollment instructions will not be distributed unless the court grants final approval and any appeals are resolved.
Submitting a claim does not guarantee a particular payment amount. The settlement administrator must approve the claim, and final benefits may depend on the number and value of valid claims.
This article reports on a proposed settlement and does not provide legal advice or guarantee eligibility or payment.