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First American Financial Corporation

Company NameFirst American Financial Corporation
Stock SymbolFAF
Class PeriodFebruary 17, 2017 to October 22, 2020
Lead Plaintiff Motion DeadlineDecember 24, 2020

On May 24, 2019, KrebsOnSecurity reported that the Company’s website “leaked hundreds of millions of documents related to mortgage deals going back to 2003.” The records included bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and driver’s license images—all of which “were available without authentication to anyone with a Web browser.” Approximately 885 million records were exposed.

 

On this news, the First American Financial’s share price fell $3.31, or 6%, to close at $49.52 per share on May 28, 2019, thereby injuring investors.

 

On October 22, 2020, after the market closed, First American Financial disclosed that it had received a Wells Notice from the SEC, regarding a preliminary determination to file an enforcement action against the Company related to the security breach. The SEC questioned the adequacy of the Company’s disclosures at the time of the incident and the adequacy of its disclosure controls.

 

On this news, First American Financial’s share price fell sharply during afterhours trading on October 22, 2020.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company failed to implement basic security standards to protect its customers’ sensitive personal information and data; (2) First American Financial faced a heightened risk of cybersecurity failure due to its automation and efficiency initiatives; and (3) as a result, defendants’ public statements were materially false and misleading at all relevant times.

 

 

Submit Your Information

If you suffered a loss on your First American Financial Corporation investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

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