Two new class-action lawsuits have been filed against Mr. Cooper in response to their October cybersecurity incident. This brings the total pending litigation to six cases.
The suits allege that Mr. Cooper neglected to implement reasonable security measures and violated FTC Safeguards Rule standards. They accuse Mr.Cooper of not adequately protecting customer data or providing timely and adequate notification of the breach.
Customers allege that unclear communication from Mr. Cooper has left them exposed to potential identity theft, financial fraud, and a risk of harm indefinitely.
All suits ask for the servicer to implement reasonable security measures to prevent similar incidents in future.
Despite the incident, all systems have been rebooted and are up and running again as normal. However, it’s estimated that this will result in an additional $5-$10 million of vendor costs for the company in Q4.
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