Bank Sending Up To $12,500 To Customers Following Major Data Breach That Affected 869,411 People

A bank in the US is settling with customers affected by a cybersecurity breach that exposed sensitive personal information.

According to new class action documents, Cadence Bank – a regional bank headquartered in the South – has agreed to a $5.25 million settlement over a data breach tied to vulnerabilities in the third-party file transfer software MOVEit, which was used by the bank and allowed cybercriminals to access customer data in May 2023.

Cadence Bank has set aside $5,250,000 in its settlement fund, with affected individuals eligible to receive up to $2,500 each for documented losses related to the breach.

“The settlement benefits plan outlines that class members who submit a claim form with documented proof of ordinary losses are eligible to receive a one-time cash payment of up to $2,500.”

According to the lawsuit, Cadence failed to adequately safeguard customer information after the MOVEit software it relied on was compromised, impacting hundreds of thousands of individuals nationwide.

In addition to standard reimbursements, affected individuals may be eligible for up to $10,000 in compensation for extraordinary losses tied to the breach, or alternatively a flat payment of $100 if they do not submit documentation.

The settlement also includes two years of free credit monitoring services. The case covers approximately 869,411 individuals whose personal information was exposed, and claimants must submit forms by June 4, 2026 to receive compensation.

As part of the agreement, Cadence Bank has also committed to investing at least $3.5 million into data security improvements separate from the settlement fund.

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