Freddie Mac Predecessor Settles $2M Data Breach Lawsuit Over 2024 Hack
A federal class action lawsuit over a 2024 data breach at a Freddie Mac predecessor has reached a $2 million settlement, pending court approval. The agreement, filed this week for preliminary approval, resolves litigation brought by plaintiffs on behalf of impacted consumers.
The breach, which occurred in 2024, exposed sensitive data, prompting legal action against the company. While details of the hack remain limited, the settlement marks the latest in a growing trend of financial institutions facing costly resolutions over cybersecurity failures. The case underscores the rising financial and reputational risks tied to data breaches in the mortgage and lending sectors.
No further specifics on the breach’s scope or the affected parties were disclosed in the settlement filing. The deal awaits final court approval.
Source: https://www.linkedin.com/pulse/morgan-stanley-rebuts-report-mortgage-complaint-payouts-8vsae
Freddie Mac cybersecurity rating report: https://www.rankiteo.com/company/freddie-mac
"id": "FRE1785752950",
"linkid": "freddie-mac",
"type": "Breach",
"date": "1/2024",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': 'Impacted consumers',
'industry': 'Mortgage and Lending',
'name': 'Freddie Mac predecessor',
'type': 'Financial Institution'}],
'data_breach': {'type_of_data_compromised': 'Sensitive data'},
'date_detected': '2024',
'description': 'A federal class action lawsuit over a 2024 data breach at a '
'Freddie Mac predecessor has reached a $2 million settlement, '
'pending court approval. The breach exposed sensitive data, '
'prompting legal action against the company.',
'impact': {'brand_reputation_impact': 'Rising reputational risks',
'data_compromised': 'Sensitive data',
'financial_loss': '$2,000,000 (settlement amount)',
'legal_liabilities': 'Class action lawsuit'},
'references': [{'source': 'Settlement filing'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'title': 'Freddie Mac Predecessor Data Breach Lawsuit Settlement',
'type': 'Data Breach'}