Lyon Real Estate Data Breach Settlement Approved: $637,500 Fund for Affected Individuals
A class action settlement has been reached in the case of a data breach at Lyon Real Estate, which exposed the personal information of 7,287 individuals between April 18 and May 4, 2023. The company has agreed to pay $637,500 to resolve allegations that it failed to adequately protect sensitive data during the incident.
Who Qualifies for Compensation?
Individuals may be eligible if:
- Their data was accessed during the breach.
- They received a notice of the data security incident from Lyon Real Estate or an affiliate.
Settlement Benefits
Eligible class members can claim one or more of the following:
- Documented loss payment: Up to $10,000 for unreimbursed expenses, including fraud losses, credit monitoring costs, and up to 10 hours of lost time at $25/hour.
- Identity theft and fraud monitoring (ITFM): Five years of three-bureau credit monitoring, $1 million in identity theft insurance, and access to a dedicated fraud specialist.
- California statutory cash payment: Residents of California (or those who resided there on April 18, 2023) may receive an estimated $250 pro rata payment.
- Residual cash payment: Any remaining funds after other payouts will be distributed among approved claimants.
How to File a Claim
Claims must be submitted by February 5, 2026, either online or via mail. Required details include the Notice ID and PIN from the settlement notice. Supporting documentation is needed for documented loss claims.
Payouts will be issued via PayPal, Venmo, Zelle, virtual prepaid card, or paper check.
Settlement Fund Breakdown
The $637,500 fund will cover:
- Settlement administration costs (TBD)
- Attorneys’ fees (up to $223,125)
- Attorneys’ expenses (up to $30,000)
- Service awards (up to $10,000 total for class representatives)
- ITFM services (cost based on claims filed)
- Payments to approved claimants (remaining funds)
Key Dates
- Opt-out deadline: January 6, 2026
- Claim filing deadline: February 5, 2026
- Final approval hearing: March 13, 2026
- Payout distribution: Approximately 120 days after final approval or claim processing completion.
Background on the Breach
The lawsuit stemmed from a 2023 cybersecurity incident in which unauthorized actors accessed files containing sensitive personal data. Plaintiffs alleged negligence in data protection, though Lyon denies wrongdoing. The settlement avoids further litigation and mandates enhanced security measures for the company.
(Sources: Class action settlement documentation)
Source: https://www.claimdepot.com/settlements/lyon-data-incident-settlement
TPRM report: https://www.rankiteo.com/company/william-lyon-homes
"id": "wil1765307059",
"linkid": "william-lyon-homes",
"type": "Breach",
"date": "4/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '7,287 individuals',
'industry': 'Real Estate',
'location': 'California, USA',
'name': 'Lyon Real Estate',
'type': 'Real Estate'}],
'customer_advisories': 'Notices sent to affected individuals with claim '
'instructions',
'data_breach': {'number_of_records_exposed': '7,287',
'personally_identifiable_information': True,
'sensitivity_of_data': 'High (sensitive personal information)',
'type_of_data_compromised': 'Personally identifiable '
'information'},
'date_detected': '2023-04-18',
'description': 'Lyon Real Estate experienced a data security incident between '
'April 18, 2023, and May 4, 2023, during which unauthorized '
'actors accessed files containing sensitive personal '
'information. The company has agreed to pay $637,500 to settle '
'a class action lawsuit alleging failure to adequately protect '
'sensitive personal information.',
'impact': {'data_compromised': 'Sensitive personal information',
'financial_loss': '$637,500 (settlement fund)',
'identity_theft_risk': 'High (identity theft insurance offered)',
'legal_liabilities': 'Class action lawsuit settlement'},
'investigation_status': 'Settled',
'post_incident_analysis': {'corrective_actions': 'Enhanced data security '
'measures',
'root_causes': 'Failure to adequately protect '
'sensitive personal information'},
'recommendations': 'Enhanced data security measures',
'references': [{'source': 'Class action settlement notice'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'response': {'communication_strategy': 'Notices sent to affected individuals',
'remediation_measures': 'Enhanced data security measures'},
'threat_actor': 'Unauthorized actors',
'title': 'Lyon Real Estate Data Breach Class Action Settlement',
'type': 'Data Breach'}