Nations Direct Mortgage Settlement Ends Class Action Suit Over December 2023 Data Breach

Nations Direct Mortgage (NDM) has reached a settlement in a class action lawsuit stemming from a December 2023 cyberattack that compromised the personal information of approximately 83,108 current and former customers and employees. The settlement, preliminarily approved on October 16, 2025, offers reimbursement options for documented out-of-pocket losses (up to $2,750) incurred between December 30, 2023, and January 7, 2026, related to identity fraud, bank fees, and credit card fees. Class members can also claim compensation for up to two hours of lost time spent resolving issues caused by the breach, at a rate of $25 per hour. California residents are eligible for an additional $75 payment. Furthermore, all class members are entitled to two years of free Kroll credit monitoring and identity theft insurance. NDM has also agreed to enhance its security practices as part of the settlement. Claim forms must be submitted online or by mail by January 7, 2026, with final approval expected at a hearing on January 22, 2026. The lawsuit alleged NDM failed to adequately protect sensitive data, including names, addresses, dates of birth, and Social Security numbers.

(Source：ClassAction.org)