Figure Lending Lawsuit: Where the HELOC Case and the Breach Suits Stand
Questions about this case?
AI Legal Assistant · free · answers in seconds · general information, not legal advice
Two kinds of lawsuits sit behind the search “figure lending lawsuit.” One is a borrower’s proposed class action claiming Figure’s “HELOCs” are really lump-sum home equity loans — a federal judge dismissed it on September 3, 2026, without deciding who was right. The other is a set of data breach suits filed after Figure said loan data was taken on January 28, 2026 — as of October 12, 2026, every one we could identify has been closed or hit with a voluntary-dismissal notice except one we could not read. There is no settlement, no fund and no claim form.
Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology
Reviewed by Leonard Goldberg, Editor · Last updated
What the Lawsuits Claim
The HELOC case. Figure Lending LLC markets home equity lines of credit. In Ward v. Figure Lending, LLC, the borrower alleged that Figure “does not actually provide HELOCs”: instead of a revolving line, the complaint says borrowers receive the full amount up front, like a home equity loan, and that the marketing was “fraudulent and misleading.” The claims were breach of contract, unjust enrichment and the Arizona Consumer Fraud Act. Law360 headlined it as a “bait-and-switch” suit. These are allegations; no court has found them true.
The data breach suits. In breach notices filed with the California Attorney General, Figure says it found evidence that on January 28, 2026, personal information was obtained “through queries on company databases that store loan and loan inquiry data.” Have I Been Pwned counts 967.2k affected email addresses; it says Figure attributed the incident to an employee being tricked into giving access. The lawsuits that followed allege Figure failed to protect that data. Our Figure data breach page covers the breach itself in detail.
Case Details
Ward v. Figure Lending, LLC, No. 3:24-cv-00533, U.S. District Court for the Western District of North Carolina, filed June 5, 2024. It was the borrower’s second try: an earlier version started in Georgia state court, was moved to federal court in Arizona and dismissed there without prejudice. District Judge Matthew E. Orso dismissed the Charlotte case on September 3, 2026.
Breach cases. Mardikian v. Figure Lending, LLC, No. 3:26-cv-00135 (W.D.N.C., filed February 19, 2026, Judge Kenneth D. Bell); Patschull v. Figure Lending Corp., No. 3:26-cv-00181 (W.D.N.C., filed March 9, 2026). Two more proposed class actions named Figure entities in April 2026: Arabian v. Figure Technology Solutions, Inc., No. 2:26-cv-01008 (D. Nev., Judge Gloria M. Navarro) and Schafer v. Figure Technologies LLC, No. 1:26-cv-02849 (S.D.N.Y., Judge Paul A. Engelmayer). We could not read those two complaints, so we cannot confirm they concern the breach.
Other suits. Hinton v. Figure Lending, LLC, No. 2:26-cv-00418 (S.D. Ohio), and Nouri v. Figure Lending LLC, No. 3:26-cv-03872 (S.D. Cal., filed July 6, 2026, Judge Benjamin J. Cheeks) are individual-named cases whose subject we could not verify.
Status: Dismissed or Withdrawn, No Settlement
HELOC case: dismissed without prejudice on September 3, 2026, for lack of subject-matter jurisdiction. The court found the amended complaint alleged only where class members lived, not that any of them was a citizen of a state other than Figure’s; the borrower had also told the court he was “stateless” because he was not domiciled in any state. The judge did not rule on whether Figure’s loans were mislabeled — “without prejudice” means the claims were not decided.
Breach cases: a notice of voluntary dismissal was filed in Mardikian on June 24, 2026, and Patschull was closed June 29, 2026. Notices of voluntary dismissal followed in Arabian, Schafer and Hinton between September 30 and October 2, 2026. The filings we could see do not say why. Only Nouri was still open in the records we checked.
Who Is Affected
HELOC borrowers: the Ward case proposed a class of Figure borrowers, but no class was ever certified, and the case is now dismissed. Nobody is a class member of anything there.
Breach notice recipients: if you got a letter headed “Notice of Data Breach” from Figure Lending Corp c/o Cyberscout — the copy attached to one lawsuit is dated February 24, 2026 — your data was in the incident. The letter covers Figure Lending Corp, Figure Lending LLC, Figure Markets Credit LLC and Figure Payments Corporation — and Figure says it may concern a loan you have with one of its partner lenders, so you can receive one without ever having dealt with Figure directly.
Keep the letter. It lists which of your fields were taken; one version filed with California lists name, address, bank account number and routing number.
Is There Any Money?
The one concrete thing Figure offered breach-notice recipients was two years of free credit monitoring and identity restoration through TransUnion. The letter set an enrollment deadline of May 31, 2026; per the letter, codes do not work after that date.
Figure Lending Lawsuit Timeline
- 1
June 5, 2024 — HELOC Class Action Filed
A borrower sues Figure Lending LLC in federal court in Charlotte, alleging its HELOCs are really lump-sum home equity loans.
- 2
January 28, 2026 — Loan Data Taken
Per Figure’s own notice, personal information is pulled through queries on databases holding loan and loan-inquiry data.
- 3
February 19–24, 2026 — First Breach Suit, Then Letters
Mardikian is filed in the Western District of North Carolina on February 19. Notices from Figure Lending Corp c/o Cyberscout are dated February 24.
- 4
March–July 2026 — More Suits, First Withdrawal
Patschull, Arabian, Schafer, Hinton and Nouri follow. A notice of voluntary dismissal is filed in Mardikian on June 24; Patschull closes June 29.
- 5
September 3, 2026 — HELOC Case Dismissed
Judge Matthew E. Orso dismisses Ward without prejudice for lack of subject-matter jurisdiction. The loan claims are not decided.
- 6
September 30–October 2, 2026 — Breach Suits Withdrawn
Notices of voluntary dismissal are filed in Arabian, Schafer and Hinton. As of October 12, 2026, there is no settlement and no claim form.
Three Things to Watch For
The breach put names, addresses, phone numbers, dates of birth and some bank details in criminal hands — exactly what a convincing fake needs:
“Claim your Figure settlement” messages
There is no Figure Lending settlement and no claims portal. Any page asking for your Social Security number or bank login to “release your payment” is collecting data, not paying you.
Calls about your HELOC or loan payment
The stolen data came from loan and loan-inquiry databases, so a caller may know your address and that you applied with Figure. Do not pay or share codes on an incoming call — hang up and use the number on your own statement or Figure’s website.
“Reactivate your expired monitoring” offers
Figure’s free TransUnion monitoring had an enrollment deadline of May 31, 2026. Anyone now offering to restore it for a fee, or asking for your card number to do so, is not acting for Figure.
Figure Lending Lawsuit — Questions People Ask
What is the Figure Lending lawsuit about?
There are two strands. Ward v. Figure Lending, LLC alleged Figure’s HELOCs were really lump-sum home equity loans marketed misleadingly; it was dismissed on September 3, 2026. A separate group of suits followed the January 28, 2026 data breach; as of October 12, 2026, those we could identify have been closed or hit with a voluntary-dismissal notice, apart from one we could not read.
Is there a Figure Lending settlement or claim form?
No. As of October 12, 2026, no Figure Lending lawsuit has produced a settlement, a fund, a claims administrator or a claim form. If one is ever approved, class members are notified by a court-appointed administrator.
Did Figure win the HELOC “bait-and-switch” case?
Not on the merits. Judge Matthew E. Orso dismissed it without prejudice because the federal court lacked jurisdiction — the complaint alleged only where class members lived, not that any was a citizen of a different state than Figure, which the court said is not enough. No court decided whether Figure’s HELOCs were mislabeled.
What data was taken in the Figure breach?
Have I Been Pwned lists names, email addresses, phone numbers, physical addresses and dates of birth. One notice version filed with California lists name, address, bank account number and routing number and says Social Security numbers were not affected for that group. Figure said it saw no unauthorized access to customer accounts and funds. Your own letter states your fields.
I got a letter from Figure Lending Corp c/o Cyberscout. Is it real?
A notice in that name, covering Figure Lending Corp, Figure Lending LLC, Figure Markets Credit LLC and Figure Payments Corporation, was filed with the California Attorney General. The format matches. Still, verify any phone number or website in it independently before giving information.
Is Figure a legit lending company?
Figure is a real, operating lender. Its own notice describes it as a technology-driven lender specializing in blockchain-enabled home equity lines of credit, refinancing and crypto-backed loans; court filings list Figure Lending Corp. and FT Intermediate, Inc. as parents of Figure Lending LLC. Being sued is not a finding of wrongdoing — none of the claims above were proven.
Can I still sign up for Figure’s free credit monitoring?
According to the notice, enrollment closed May 31, 2026, and codes do not work after that date. Credit freezes at Equifax, Experian and TransUnion are free and do the more important job anyway.
What should I do now?
If you got a breach letter, keep it, freeze your credit and watch your bank account for small test debits, since some letters list bank account and routing numbers. If you have a dispute about your Figure HELOC itself, the dismissed class action does not help you — contact Figure, and if that fails, the Consumer Financial Protection Bureau.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
Related Consumer Brand Lawsuits
Figure Data Breach Lawsuit
The January 2026 breach, the Mardikian case and what was exposed
Open Class Action Settlements
Settlements you can still file a claim in, with deadlines
Data Breach Settlement Calculator
What comparable breach settlements have actually paid
Settlement Payout Calculator
Estimate a per-person payout from a fund and claim rate