loanDepot $25M Data Breach Class Action Settlement

If you received a Notice of Data Breach from loanDepot regarding a data breach that occurred between January 3-5, 2024, you may be qualify to submit a claim for up to $5,000 from a class action settlement.

loanDepot has agreed to pay $25 million to settle a class action lawsuit for allegedly failing to adequately protect personal information during the data breach.

Who is eligible for a loanDepot settlement payout?

To qualify as a class member, you must have been one of the 16.9 million people notified that their personally identifiable information (PII) was potentially compromised in the loanDepot data breach.

California Subclass: includes approximately 2,449,083 class members.

How much are the loanDepot settlement payouts per person?

Class members can submit for one or more of the following claims:

• Financial Monitoring and Identity Theft Insurance Services: Two years of coverage valued at $12.95 per month
• Out-of-Pocket Costs: Reimbursement up to $5,000 for documented financial expenses and losses related to the breach
• Monetary Payment: A cash payment expected to be between $5.30 and $70.71, depending on the number of valid claims filed
• California Subclass Payment: Additional payment for California residents
• Expected to be between $14.90 and $74.52
• Capped at $150 per person

How to claim a loanDepot data breach settlement payout

Class members can submit a claim online or download a PDF claim form to print and mail to the settlement administrator.

Claim form mailing address: In re loanDepot Data Breach Litigation, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103

Claims must be submitted online or postmarked by May 27, 2025.

Required documentation for some claims

Documentation is required for certain claims:

• All claims: Notice ID & Confirmation Code
• Out-of-Pocket Costs: Require documentation such as:
• Account statement with unauthorized charges highlighted
• Correspondence from financial institution declining to reimburse you for fraudulent charges
• Receipt for services addressing identity theft
• Accountant bill for re-filing tax return
• Letter from IRS or state taxing authority about tax fraud in your name
• Documents showing the length of time waited to receive tax refund and the amount
• Notices or statements showing payment for a credit freeze
• Phone bills, gas receipts, postage receipts
• Detailed list of locations to which you traveled, indication of why you traveled there and number of miles you traveled.

• If you did not receive California Subclass notice: but lived in California between January 3, 2021 and December 2, 2024, you must provide proof demonstrating your residency:
• Utility bills, bank statements, ect.

loanDepot Data Settlement payment options

Class members can select one of:

• Prepaid card sent to the email address provided
• PayPal
• Venmo
• Check mailed to the address provided on claim form

$25 Million Settlement fund

The settlement fund of $25,000,000 will cover:

• Credit monitoring and identity theft protection services: Paid separately from the settlement fund
• Settlement notice and administration costs: TBD, paid from the settlement fund
• Attorneys' fees: Up to $7,500,000 plus expenses
• Service awards for class representatives: $50,000
• $2,500 for each class representative

• Monetary payments:
• Out of Pocket Loss Reimbursements: Capped at $2,000,000 (subject to pro rata reductions)
• California Subclass Cash Payments: $3,650,000
• Cash Payments: Pro rata share of the remaining balance

Important dates

• Deadline to File a Claim: May 27, 2025
• Final Approval Hearing: August 18, 2025

When is the loanDepot Data Breach payout date?

The final hearing is scheduled for August 18, 2025.

According to the Settlement Agreement, if the court grants final approval of the settlement, all appeals are resolved, and certain other factors, payments will be payments will commence to approved claimants within 30 days.

Why is there a class action settlement?

The lawsuit alleges that loanDepot failed to adequately protect customer information, leading to a data breach impacted over sixteen million individuals.

Personally identifiable information exposed in the data breach may have included:

• Names
• Addresses
• Email addresses
• Financial account numbers
• Social Security numbers
• Phone numbers
• Dates of birth

In addition to the $25 million settlement fund, loanDepot undertook remedial efforts and changes to business practices, which are estimated to have cost the company $9,341,000.

These business practice changes included but are not limited to:

• Enhancements in data management
• Identity protection
• Cloud security and threat detection capabilities

Ultimately, the settlement was reached to avoid the risks and expenses of a possible trial.