Flagstar Bank (FLG, FLG-PA) Shareholder Investigation

Shamis & Gentile, P.A. is investigating potential shareholder action claims on behalf of Flagstar Bank, N.A. (“Flagstar Bank” or the “Company”) (FLG, FLG-PA) against certain directors and officers for alleged breaches of fiduciary duty and other violations of law. Concerned shareholders are advised to contact the firm now.

The law firm is investigating whether Flagstar Bank’s board of directors and senior management may have failed to maintain adequate internal controls and oversight systems related to cybersecurity risk management and disclosure practices. The potential claims stem from reports of board-level oversight gaps following a late-2021 ransomware attack that compromised personal information for approximately 1.5 million customers.

According to the U.S. Securities and Exchange Commission, the Company described cyber risks as hypothetical in public filings even after management allegedly knew that customer data had been stolen. An SEC order, issued in December 2024, found violations of Sections 17(a)(2) of the Securities Act and 13(a) of the Exchange Act and imposed a $3.55 million penalty.

On October 2, 2025, Flagstar Bank agreed to a $31.5 million consumer settlement to resolve claims brought by more than two million individuals affected by the 2021–2022 data breaches.

The investigation includes a review of possible deficiencies in incident escalation, delayed notification, and weak governance that may have exposed the Company to repeated data-security lapses and regulatory scrutiny. These issues have potentially increased the Company’s litigation and compliance costs and may continue to influence investor confidence and valuation for both FLG common and FLG-PA preferred shares.

If you have held Flagstar Bank (FLG, FLG-PA) shares continuously since at least November 2021, you may be able to seek corporate reforms, the return of funds back to the Company, and a court-approved incentive award for you, all at absolutely no cost.

Shamis & Gentile, P.A. stands out as an advocate for shareholders seeking corporate accountability and governance reforms. The firm is committed to pursuing shareholder actions that benefit companies and their shareholders by recovering damages and implementing meaningful corporate governance improvements. Shamis & Gentile has recovered over $1 billion for consumers nationwide. Its extensive experience, expertise, and resources enable the firm to resolve disputes in a wide range of matters, including shareholder actions, class actions, and complex commercial litigation.

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