Loan Depot, the nation's fifth-largest retail mortgage lender, is facing a class action lawsuit over an alleged data breach, which allegedly exposed the personal information of more than 16 million people.
The Irvine-based company, which has funded more than $275 billion since its inception in 2010, announced the security incident in a Form 8-K filing with the Securities and Exchange Commission. The firm noted that it had detected unauthorized activity on its systems and had taken steps to contain the incident. This included launching an investigation with assistance from leading cybersecurity experts and notifying applicable regulators and law enforcement.
Despite these measures, Loan Depot confirmed that an unauthorized third party had gained access to certain company systems and encrypted data. In response, Loan Depot shut down certain systems and continues to implement measures to secure its business operations.
The case was filed in Los Angeles federal court on Jan. 23.
Plaintiffs are represented by Daniel S. Robinson and Michael W. Olson, of the firm of Robinson Calcagnie, of Newport Beach; and Stephen R. Basser and Samuel M. Ward, of the firm of Barrack Rodos & Bacine, of San Diego.