Lakeview Loan Servicing Agrees to $26M Settlement Over 2021 Data Breach
Lakeview Loan Servicing LLC, along with affiliates Bayview Asset Management LLC, Pingora Loan Servicing LLC, and Community Loan Servicing LLC, has reached a $26 million settlement to resolve a class action lawsuit stemming from a data breach in October 2021. The incident exposed the personally identifiable information (PII) of up to 5.8 million current and former customers, with plaintiffs alleging the companies failed to implement adequate security measures.
Eligibility and Compensation
Class members include U.S. residents who received a breach notification from any of the involved companies. California residents at the time of the breach may qualify for additional benefits. Compensation options include:
- Out-of-pocket reimbursement: Up to $5,000 for documented expenses related to identity theft, credit freezes, or fraud, with a $5 million cap across all claims.
- Pro rata cash payments: A share of remaining settlement funds, with California residents eligible for double the amount.
- Credit monitoring: One year of free CyEx Financial Shield Total services.
Settlement Fund Allocation
The $26 million fund covers:
- Up to $8.67 million in attorneys’ fees.
- $165,000 in service awards for 22 class representatives.
- Administrative costs, credit monitoring, and out-of-pocket claims.
Key Deadlines
- Claim submission: June 22, 2026.
- Opt-out deadline: June 11, 2026.
- Final fairness hearing: July 2, 2026.
- Payouts: Expected approximately 75 days after court approval.
The defendants deny wrongdoing but settled to avoid prolonged litigation. The breach, occurring on October 11, 2021, remains a significant example of financial sector cybersecurity risks.
Source: https://www.claimdepot.com/settlements/lakeview-data-breach-settlement
Lakeview Loan Servicing, LLC. cybersecurity rating report: https://www.rankiteo.com/company/lakeview-loan-servicing
Pingora Asset Management LLC cybersecurity rating report: https://www.rankiteo.com/company/pingora-asset-management
Bayview Loan Servicing, LLC cybersecurity rating report: https://www.rankiteo.com/company/bayview-loan-servicing-llc
"id": "LAKPINBAY1774312810",
"linkid": "lakeview-loan-servicing, pingora-asset-management, bayview-loan-servicing-llc",
"type": "Breach",
"date": "3/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '5,800,000',
'industry': 'Mortgage Servicing',
'location': 'United States',
'name': 'Lakeview Loan Servicing LLC',
'type': 'Financial Services'},
{'customers_affected': '5,800,000',
'industry': 'Asset Management',
'location': 'United States',
'name': 'Bayview Asset Management LLC',
'type': 'Financial Services'},
{'customers_affected': '5,800,000',
'industry': 'Loan Servicing',
'location': 'United States',
'name': 'Pingora Loan Servicing LLC',
'type': 'Financial Services'},
{'customers_affected': '5,800,000',
'industry': 'Loan Servicing',
'location': 'United States',
'name': 'Community Loan Servicing LLC',
'type': 'Financial Services'}],
'customer_advisories': 'Breach notifications sent to affected customers with '
'compensation options.',
'data_breach': {'number_of_records_exposed': '5,800,000',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': 'Personally Identifiable '
'Information (PII)'},
'date_detected': '2021-10-11',
'description': 'Lakeview Loan Servicing LLC and its affiliates reached a $26 '
'million settlement to resolve a class action lawsuit stemming '
'from a data breach in October 2021 that exposed the '
'personally identifiable information (PII) of up to 5.8 '
'million current and former customers. Plaintiffs alleged the '
'companies failed to implement adequate security measures.',
'impact': {'brand_reputation_impact': 'Significant',
'data_compromised': 'Personally Identifiable Information (PII)',
'financial_loss': '$26,000,000',
'identity_theft_risk': 'High',
'legal_liabilities': 'Class action lawsuit settlement'},
'investigation_status': 'Settled',
'lessons_learned': 'Failure to implement adequate security measures can lead '
'to significant financial and reputational damage.',
'post_incident_analysis': {'root_causes': 'Inadequate security measures'},
'recommendations': 'Implement stronger security measures to protect customer '
'data and prevent future breaches.',
'references': [{'source': 'Class Action Settlement Notice'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'response': {'communication_strategy': 'Breach notifications to affected '
'customers'},
'title': 'Lakeview Loan Servicing Data Breach Settlement',
'type': 'Data Breach'}