Lane Gay filed suit in March 2024 against Mortgage Contracting Services, LLC, a nationwide property services provider headquartered in Lewisville, Texas, after cybercriminals allegedly gained unauthorized access to MCS's computer systems during a data security breach. Gay alleged that MCS collected and maintained highly sensitive personal identifiable information — including names and Social Security numbers — belonging to its current and former employees and customers, and that an unauthorized actor may have acquired files containing that data. The complaint asserted seven causes of action: negligence, negligence per se, intrusion upon seclusion / invasion of privacy, breach of implied contract, unjust enrichment, breach of fiduciary duty, and breach of confidence.
The parties notified the court of a joint settlement in March 2025 and executed it in June 2025. The court granted preliminary approval on July 3, 2025. Judge Sean D. Jordan of the Eastern District of Texas granted final approval on April 22, 2026, after a February 20, 2026 fairness hearing at which no class members appeared.
The settlement class covers all individuals in the United States whose personal information was impacted by the breach, including those sent notice of the incident. Notices were delivered by postcard to 2,293 of the 2,319 potential class members whose valid mailing addresses could be identified. Not a single class member objected or requested exclusion. A CAFA notice sent to the attorneys general of every U.S. state and territory and to the U.S. Attorney General drew no objections or questions either.
The settlement provides uncapped monetary relief for documented losses: up to $5,000 per claimant for identity fraud and theft-related losses more likely than not caused by the breach, up to $500 for ordinary out-of-pocket expenses, and $25 per hour for up to three hours of time spent responding to the incident. Class members also receive two years of credit monitoring and identity theft protection and $1 million in identity theft insurance at no charge. MCS separately agreed to implement data security upgrades at its own cost.
The court awarded class counsel $137,500 in attorney's fees — less than one percent of the $14.385 million maximum value available to the class, calculated by multiplying 2,877 class members by the $5,000 per-member cap. The lodestar cross-check, based on counsel's submitted affidavits reflecting a lodestar of $126,782.50 for nearly 200 hours of work, produced a multiplier of 1.07, well within the range courts in the circuit routinely approve. The court awarded lead plaintiff Lane Gay $3,000 for the considerable time he invested in the case communicating with counsel, reviewing documents, and participating in settlement negotiations.