Lakeview Loan Servicing Hit with At Least Two Class Action Lawsuits Over 2021 Data Breach

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Lakeview Loan Servicing, LLC (LLS) has been hit with at least two proposed class action lawsuits in the wake of a late 2021 data breach that reportedly affected more than 2.5 million consumers.

The lawsuits, both filed March 31, allege that the data breach, which occurred from October 27 through December 7, 2021, was a direct result of Lakeview’s failure to implement adequate cybersecurity measures. According to the cases, Lakeview customers’ names, addresses, loan and Social Security numbers, and in some cases additional loan information, were among the data exposed in the breach.

Moreover, the suits claim that Lakeview waited until late March 2022 to notify those whose information was compromised. Per the cases, Lakeview not only exposed its customers to a heightened risk of identity theft and fraud but made matters worse by delaying notice to victims.

“When a data set that is inclusive of the aforementioned [personally identifiable information] is breached, every moment is precious to ensure that that data is not then weaponized against the rightful owner of that data through identity theft,” one of the complaints stresses. “Sitting on this information allowed LLS to dodge responsibility and inevitably worsened the Data Breach victims’ chances at weathering the storm that LLS created.”

Lakeview is the fourth-largest mortgage loan servicer in the U.S., the cases relay. Despite the defendant’s responsibility to safeguard customers’ private information, Lakeview allegedly failed to properly encrypt its data or otherwise protect its systems and files from unauthorized access. Per the suits, an unauthorized individual obtained access to the loan servicer’s storage servers between October 27 and December 7, 2021, and it wasn’t until January 31, 2022 that Lakeview was able to ascertain what information was compromised.

Lakeview nevertheless waited another month before notifying the roughly 2.5 million consumers who were affected by the breach, the cases state.

According to the lawsuits, although Lakeview had the resources to invest in adequate cybersecurity procedures and protocols, the loan servicer failed to implement industry-standard data security measures. The complaints relay that the consequences of the defendant’s failure to properly protect customers’ data are “long lasting and severe” given the misuse of their information could continue for years.

The complaints, embedded below, respectively look to cover anyone who utilized Lakeview’s services and whose personally identifiable information was maintained on the company’s system that was compromised in the data breach and who was sent a notice of the data breach, and anyone in the U.S. whose personally identifiable information was compromised in the data breach.

How do I join the lawsuits?

There’s usually nothing you need to do to join or be considered part of a proposed class action when it’s first filed. If either of the cases moves forward and settles, that’s when those affected, i.e., the class members, should receive notice of the settlement with instructions on how to claim their share.

In the meantime, one of the best things you can do is to stay informed.

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