A cyber attack resulted in
Another class-action lawsuit was filed in California on Tuesday,
On Wednesday, two law firms, Lynch Carpenter in Pennsylvania and Emerson in Texas, publicly solicited help from clients affected by the data breach, potentially setting the stage for more class-action lawsuits against lenders. Pave the way.
The incident forced Loandepot to temporarily shut down most of its systems, exposing the private information of 16.6 million current and former customers. As of Thursday, Loandepot was fully operational, a company neutral said.
A class action lawsuit filed by Loandepot borrower Jonathan Rosa claims the company “[willfully failed] Preventing data leakage by claiming that customer PII is secure when in fact it is not. Rosa’s lawsuit also accuses mortgage companies of not investing adequately in privacy and security protections.
Loandepot declined to comment.
The lawsuit points to Loandepot’s security policies, in which the lender claims it “takes steps to protect … personal and sensitive information through industry-standard physical, electronic and operational policies and practices.”
“Despite all of these promises, Loandepot allowed a data breach to occur on January 8, 2024, and Plaintiffs’ and Class Members’ personal confidential PII was viewed, disclosed and obtained by unauthorized parties,” Rosa’s lawsuit states.
According to the lawsuit, customers affected by the breach face the following risks:
Loandepot isn’t the only company in the financial services space to be hit with lawsuits recently over cyberattacks.
Historically, class action lawsuits like the one currently being filed against Loandepot, Mr. Cooper and Fidelity have taken considerable time to settle in court.
For example, in
At the same time, for