Mortgage company Mr. Cooper recently experienced a data breach.

Mr. Cooper, a Dallas-based mortgage company, is facing a second class-action lawsuit following a significant data breach in late 2023 that affected 14.6 million customers. The breach occurred between late October and early November, leading to a lawsuit filed on December 22, accusing the company of negligence in protecting customer data. Claimants seek monetary damages and improvements to security protocols.

Mr. Cooper, managing 4.3 million customers with an unpaid principal balance of $870 billion, is among the top 20 mortgage originators in the US. The chairman and CEO, Jay Bray, issued an apology to customers, emphasizing the company’s commitment to customer trust and addressing the challenges faced.

The breach exposed sensitive customer information, and though no identity theft or financial fraud has been reported directly linked to the breach, the lawsuit argues customers are at substantial risk, especially if the stolen information is sold on the dark web.

Sari Mazzurco, an assistant professor of law, highlighted the challenge of the class-action suit due to the lack of reported identity theft cases. Mr. Cooper has allocated $25 million for related expenses, offering identity protection services for two years. Ongoing efforts include a forensic review, coordination with law enforcement, and addressing litigation.

The legal battle follows a similar case involving Home Care Providers of Texas, settling for $1.4 million after a data breach. With 14.6 million individuals affected, the potential settlement for Mr. Cooper could exceed $1 billion. The company may consider settling to avoid prolonged litigation costs and put the issue behind them quickly.

As Mr. Cooper faces the lawsuit, scrutiny will likely focus on its cybersecurity practices, setting a precedent for how companies manage and protect customer data in the future. The article underscores the potential impact on the company’s reputation and the broader implications for the industry’s data security standards.

Have you received a data breach notification from Mr. Cooper?

Have you received a data breach notice from Mr. Cooper? Have you been a victim of identity theft? The Adkins Firm represents identity theft victims. We help our clients clear their good name with the credit reporting agencies and background reporting companies. Contact us for a free case review. Remember, it’s your credit report!