A US bank is negotiating with customers affected by a cyber security breach that exposed personal data.
According to the new class documentsCadence Bank – a regional bank based in the South – has agreed to pay $5.25 million in damages for a data breach linked to the vulnerability of a third-party file transfer program MOVEit, which was used by the bank and allowed cybercriminals to access customer information in May 2023.
Cadence Bank has set aside $5,250,000 in its regular fund, and the affected parties are eligible to receive $2,500 each in damages for the breach.
“The compensation benefit plan indicates that members who submit a claim form with proof of normal loss are eligible for a one-time payment of $2,500.”
According to the lawsuit, Cadence failed to protect customer information after the MOVEit software it relied on was compromised, affecting thousands of people nationwide.
In addition to regular refunds, victims can receive up to $10,000 in compensation for extraordinary losses, or a $100 fine if they don’t provide documentation.
The settlement also includes two years of free credit analysis services. The lawsuit affects approximately 869,411 individuals whose information was exposed, and plaintiffs must submit applications by June 4, 2026 to receive compensation.
As part of the agreement, Cadence Bank has also committed to investing at least $3.5 million in data security management in addition to a fixed fund.
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