Academy Mortgage Settles Data Breach Lawsuit for Nearly $2 Million
Academy Mortgage, now part of Guild Mortgage, has agreed to a $1.995 million settlement to resolve a class-action lawsuit stemming from a 2023 cyberattack that exposed the personal data of approximately 285,000 consumers. The proposed deal, filed in a Utah federal court this week, awaits judicial approval after two years of litigation over allegations of negligence in securing customer information.
Under the settlement terms, affected class members will receive three years of credit monitoring with $1 million in identity theft insurance coverage. Eligible individuals may also claim up to $3,000 in reimbursements for documented losses tied to the breach. The six named plaintiffs will each receive $2,500 as class representatives, while California residents may qualify for additional payments. Plaintiffs’ attorneys have requested a $665,000 fee, equivalent to one-third of the settlement fund.
The company has denied wrongdoing but agreed to implement unspecified data security improvements. The March 2023 attack, later claimed by a ransomware group, remains undisclosed in detail. The settlement follows an $825,000 fine paid to a California regulator earlier this month over alleged cybersecurity failures.
This case reflects a broader trend in the mortgage industry, where firms increasingly opt for settlements over prolonged litigation. So far this year, at least four other lenders have resolved data breach claims, including Guild’s parent company, Bayview Asset Management, which settled a separate $26 million case affecting 5.7 million individuals. Meanwhile, new lawsuits continue to emerge, with Lennar and its financing arm facing legal action after disclosing two recent breaches impacting tens of thousands of customers.
Guild Mortgage cybersecurity rating report: https://www.rankiteo.com/company/guild-mortgage-company
"id": "GUI1787948905",
"linkid": "guild-mortgage-company",
"type": "Breach",
"date": "3/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '285,000',
'industry': 'Financial Services',
'location': 'USA',
'name': 'Academy Mortgage',
'type': 'Mortgage Company'}],
'customer_advisories': 'Credit monitoring and identity theft insurance '
'offered to affected individuals',
'data_breach': {'number_of_records_exposed': '285,000',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High (personally identifiable '
'information)',
'type_of_data_compromised': 'Personal data'},
'date_detected': '2023-03',
'description': 'Academy Mortgage, now part of Guild Mortgage, has agreed to a '
'$1.995 million settlement to resolve a class-action lawsuit '
'stemming from a 2023 cyberattack that exposed the personal '
'data of approximately 285,000 consumers. The attack was later '
'claimed by a ransomware group.',
'impact': {'data_compromised': 'Personal data of approximately 285,000 '
'consumers',
'financial_loss': '$1.995 million settlement + $825,000 fine',
'identity_theft_risk': 'High (credit monitoring and identity theft '
'insurance provided)',
'legal_liabilities': 'Class-action lawsuit'},
'investigation_status': 'Settled',
'post_incident_analysis': {'corrective_actions': 'Data security improvements '
'(unspecified)',
'root_causes': 'Alleged negligence in securing '
'customer information'},
'references': [{'source': 'Legal filing'}],
'regulatory_compliance': {'fines_imposed': '$825,000 (California regulator)',
'legal_actions': 'Class-action lawsuit'},
'response': {'remediation_measures': 'Data security improvements '
'(unspecified)'},
'threat_actor': 'Ransomware group',
'title': 'Academy Mortgage Data Breach Settlement',
'type': 'Data Breach'}