First American Financial Corp.

Floyd v. First Am. Fin. Corp., et al., No. 2:20-cv-09781

On October 22, 2020, First American Financial Corp. (NYSE:FAF) shocked the market when it disclosed that in September, it had received a “Wells Notice” from the U.S. Securities and Exchange Commission informing First American that the SEC had made a preliminary determination to recommend a filing of an enforcement action against First American. The action recommended by the SEC pertains to the adequacy of disclosures First American made during the second quarter of 2019 relating to a massive data breach at the Company. This news stunned the market, causing First American shares to plummet by approximately 9% in one day.

A lawsuit has been filed against First American and certain of its executives in the U.S. District Court for the Central District of California. The lawsuit is captioned Floyd v. First Am. Fin. Corp., et al., No. 2:20-cv-09781 (C.D. Cal.). The suit alleges that in May 2019, news broke that First American’s website had been breached, leading to hundreds of millions of documents related to mortgage deals going back to 2003 being leaked. The digitized records were reported to have included bank account numbers and statements, mortgage and tax records, Social Security numbers, drivers license images, and more. In addition to the SEC’s investigation and recommended enforcement action, state authorities in at least New York and Massachusetts are also investigating First American, and the New York Department of Financial Services has filed a statement of charges against the Company and scheduled an administrative hearing in connection therewith.

Lead Plaintiff deadline
December 24, 2020
class period
February 17, 2017
October 22, 2020
Case Documents
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