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Mr. Cooper Negligent in Data Breach, Despite 'Obvious Threat,' Says Complaint

Mr. Cooper “negligently allowed” customers’ personally identifiable information (PII) to be compromised and failed to take “reasonable steps to protect against an obvious threat,” alleged a Feb. 1 complaint (CVMV2401017) in California Superior Court, Riverside County, involving an Oct. 31…

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data breach. Plaintiff Michael Geller, who received a letter Dec. 15 informing him of the breach in Mr. Cooper’s systems, alleges the mortgage company “failed to take reasonable steps to employ security measures that are adequate” and didn’t attempt to protect PII, “despite highly publicized breaches of other large companies in recent years.” Affected files included Geller’s name, address, phone number, email address, Social Security number and birthdate, it said. As a result of the data breach, the Moreno Valley, California, resident has suffered losses including loss of control over the value of his PII. The suit also names Does 1-10 as defendants. Causes of action are negligence, breach of implied contract and violation of the California Data Breach Notification Act. Geller seeks appropriate monetary relief not to exceed $35,000, said the complaint. Mr. Cooper didn't comment.