Nations Direct Mortgage agreed to settle a class action lawsuit that arose after a targeted cyberattack in December 2023 exposed customer information, including names, addresses, phone numbers, email addresses, dates of birth, and Social Security numbers. The lawsuit alleged that the company failed to adequately safeguard this data.
Who Is Eligible?
Class members include:
- Individuals residing in the United States who received a notice that their personal information was compromised in the December 2023 data breach.
- California residents, who are part of a subclass and eligible for an additional payment.
- Current and former Nations Direct Mortgage employees affected by the breach.
Settlement Benefits
Class members may claim one or more of the following:
Credit Monitoring:
Two additional years of credit monitoring for those previously enrolled through Nations Direct Mortgage. The service includes $1 million in identity theft insurance, real-time credit monitoring, dark web scanning, and public records monitoring.
Documented Out-of-Pocket Losses (up to $2,750):
Eligible expenses include bank or credit card fees, costs for credit reports or for freezing/unfreezing credit, postage for contacting financial institutions, unreimbursed fraudulent charges, and other losses resulting from identity theft.
Lost Time Compensation:
Up to two hours at $25 per hour, for a maximum of $50.
California Subclass Payment:
California residents may claim a one-time $75 statutory cash payment.
How to File a Claim
A claim form is required. Claims may be submitted online or by printing and mailing or emailing the PDF claim form.
Mailing address:
NDM Data Breach Incident Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
Email: info@NDMSettlement.com
Claims must be submitted online, postmarked, or emailed by January 7, 2026.
Required Documentation
- Unique ID and PIN from the settlement notice (for online claims).
- Supporting documents for out-of-pocket loss claims, such as bank or credit card statements, invoices, or proof of fraudulent charges.
Payment Options
Class members may choose:
- PayPal
- Venmo
- Zelle
- Virtual prepaid card
- Paper check
Settlement Fund Breakdown
The settlement fund totals $225,000, which will cover:
- Settlement administration costs (to be determined)
- Attorneys’ fees and costs (up to $225,000)
- Service awards to class representatives ($2,500 each)
- Additional credit monitoring services (cost varies by participation)
- Payments to approved claimants (determined by the number of claims)
Important Dates
- Opt-out deadline: December 23, 2025
- Claim filing deadline: January 7, 2026
- Final approval hearing: January 22, 2026, at 10:15 a.m. Eastern (via Zoom)
When Will Payments Be Issued?
Payments will be distributed approximately 60 days after the claim deadline.
Why Was This Settlement Reached?
The lawsuit alleged that Nations Direct Mortgage failed to properly protect customer data, leading to the December 2023 cyberattack. Although the company denies wrongdoing, both sides agreed to settle to avoid the cost and uncertainty of continued litigation.
Award Range: $50 to $2,875
Claim Deadline: January 7, 2026
