Lyon Real Estate Data Breach Class Action Settlement

Individuals who received a notice from Lyon Real Estate or one of its affiliates indicating that their personal information may have been compromised in a data breach between April 18, 2023, and May 4, 2023, may qualify to submit a claim for up to $10,000 or more from a class action settlement.

Lyon Real Estate has agreed to pay $637,500 to settle a class action lawsuit alleging that it failed to adequately protect sensitive personal information during a data breach. The cybersecurity incident impacted 7,287 individuals.

Who can file a data breach claim?

Class members must meet the following criteria:

• Their personally identifying information may have been accessed during the Lyon Real Estate data security incident that occurred between April 18, 2023, and May 4, 2023
• They received a notice of data security incident from Lyon Real Estate or a Lyon affiliate.

How much will the class action settlement payment be?

Class members can submit to receive one or more of the following:

• Documented loss payment: Class members can claim up to $10,000 for documented unreimbursed losses and expenses that are traceable to the data breach. Eligible expenses may include:
• Fraud losses or charges and fees not reimbursed by a financial institution
• Costs for credit monitoring, credit freezes, or credit reports purchased after April 18, 2023
• Up to 10 hours of lost time at $25 per hour for time spent dealing with the breach

• Identity theft and fraud monitoring (ITFM): All class members can elect to receive five years of three-bureau credit monitoring, up to $1 million in identity theft insurance, and access to a dedicated fraud specialist.
• California statutory cash payment: Class members who are residents of California, or resided in California on April 18, 2023, can submit to receive a pro rata cash payment, estimated at $250. Final payment amount will be determined by the number of claims filed.
• Residual cash payment: All class members that submit a claim for any benefit, are eligible to receive a residual cash payment. If money remains in the settlement fund after all other payments and fees, it will be distributed pro rata among all approved claimants.

How to claim a class action rebate

Class members can submit the online claim form or print and mail the PDF claim form to the settlement administrator. The claim deadline is Feb. 5, 2026.

Settlement administrator's mailing address: Lyon Data Security Incident Litigation c/o Settlement Administrator P.O. Box 25226 Santa Ana, CA 92799

Required proof and claim information

• Notice ID and PIN from settlement notice required to submit a claim online or by mail.
• Documented loss payment claims require supporting documentation, which may include as account statements, receipts, and a sworn attestation for lost time.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to the address provided

$637,500 data breach settlement fund breakdown

The settlement fund of $637,500 will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $223,125
• Attorneys' expenses: Not exceed $30,000
• Service awards to class representatives: Up to $5,000 each, $10,000 total
• Identity theft and fraud monitoring services: Cost determined by number of claims filed
• Payments to approved claimants: Remaining settlement funds

Important dates

• Opt-out deadline: Jan. 6, 2026
• Deadline to file a claim: Feb. 5, 2026
• Final approval hearing: March 13, 2026

When is the Lyon Real Estate data breach settlement payout date?

Payments and benefits will be distributed to eligible class members approximately 120 days after the settlement is granted final approval or when claim processing is complete, whichever is later.

Why did this class action settlement happen?

The class action lawsuit was filed after Lyon Real Estate experienced a data security incident in April and May 2023, during which unauthorized actors accessed files containing sensitive personal information. Plaintiffs alleged that Lyon failed to adequately protect this information.

Lyon denies the allegations, but both parties agreed to settle to avoid the expense and and uncertainty of continued litigation. The settlement also requires Lyon to implement enhanced data security measures.

Sources

1. Official class notice
2. Settlement website FAQ page
3. Settlement claim form