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First American Sued Over Leak of Mortgage Files

First American Financial, the real estate title insurer exposed on Friday for having placed at risk as many as 885 million files containing customer information, was sued by a home buyer for putting him at risk of identity theft, Bloomberg reported.

The suit, filed in U.S. District Court in California, appears to be the first, but may not be the last, legal problem that lands in First American’s lap after the news of a potential security breach of massive proportions. It accuses First American of “failing to implement even rudimentary security measures” to protect the files.

The suit follows a report by the website Krebs on Security that First American exposed hundreds of millions of files on mortgage transactions containing personal information of customers including Social Security numbers, drivers licenses, bank statements, tax records and other data. The files were  available to anyone with a web browser without authentication, Krebs on Security reported.

Shares of First American, which is one of the largest mortgage title insurers in the country, fell more than 6% on Tuesday. The company blocked access to the files and is working to determine whether anyone’s information was compromised. 

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