Mr. Cooper Group Faces Class Action Lawsuits Over Cybersecurity Breach

Dallas-based mortgage servicer, Mr. Cooper Group, finds itself entangled in federal class action lawsuits following a cyberattack on October 31 that affected its 4.3 million customers. With nearly $937 billion in unpaid principal balance, the company faced system lockdown until November 12, striving to secure its data amidst the breach.

The lawsuits allege negligence on Mr. Cooper’s part in safeguarding sensitive customer data, asserting that the breach compromised names, social security numbers, addresses, phone numbers, dates of birth, zip codes, and states of residence.

Despite the company’s immediate action to secure its systems and reassure customers during the lockdown, allegations point to a failure to meet industry standards for protecting the personally identifiable information of millions within its databases.

While a Mr. Cooper spokesperson declined to comment on ongoing litigation, the company pledged to investigate the breach’s extent, offering affected customers complimentary credit monitoring services soon.

In an update on its website, Mr. Cooper confirmed the partial restoration of operations, including phone systems and its website. However, uncertainties loom over the financial implications of the breach, with the company anticipating additional vendor costs of $5 to $10 million for the fourth quarter. The complete picture of remediation and legal expenses arising from the cyberattack remains unclear.

- Advertisment -ad

Most Popular