$5.25M Cadence Bank Settlement Ends Class Action Lawsuit Over May 2023 Data Breach

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Cadence Bank has agreed to pay $5,250,000 to settle a class action lawsuit filed over an alleged vulnerability in a third-party file transfer software known as MOVEit, used by Cadence Bank, that allowed cybercriminals to access the private information of Cadence’s customers in May 2023.

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The $5.25 million Cadence Bank class action settlement received preliminary approval from the court on January 5, 2026 and covers all individuals in the United States who were notified by Cadence that their personally identifiable information was included in the files affected by the May 2023 MOVEit data breach.

The settlement agreement estimates that approximately 869,411 individuals are covered by the Cadence Bank settlement.

The court-approved website for the Cadence Bank data breach settlement can be found at MOVEitCadenceSettlement.com.

According to the website, Cadence settlement class members who file a valid, timely claim form have multiple options for reimbursement.

The settlement benefits plan outlines that class members who submit a claim form with documented proof of ordinary losses stemming from the data breach are eligible to receive a one-time cash payment of up to $2,500 from the settlement. The plan elaborates that class members may receive compensation for unreimbursed expenses under this benefit related to bank fees, data and phone charges, fees for credit reports, credit monitoring products and identity theft insurance purchased between May 31, 2023 and June 4, 2026.

Furthermore, class members may also receive reimbursement for up to four hours of lost time spent responding to the breach, at a rate of $25 per hour, for a maximum payout of $100. Per court documents, payments for lost time count toward the $2,500 ordinary loss cap.

Cadence settlement class members who submit with their claim form documented proof of extraordinary losses stemming from the data breach are eligible to receive a one-time cash payment of up to $10,000. The settlement notes that claims for extraordinary losses must demonstrate that they are actual unreimbursed expenses not covered by another settlement benefit and more likely than not caused by the data breach and incurred between May 31, 2023 and June 4, 2026.

In lieu of either documented-loss payment, Cadence settlement class members can instead file a claim to receive a one-time alternative cash payment of $100. This payment, the benefits plan notes, may be subject to a pro-rated increase or decrease depending on the total number of valid claims filed.

Class members may receive their payment via check or electronic payment, the benefits plan adds, and all checks must be cashed within 120 days of issuance before expiration.

In addition to any monetary benefits, all Cadence settlement class members may file a claim form to receive an enrollment code for two free years of three-bureau credit monitoring, which includes services such as dark web monitoring, identity theft insurance and access to fraud resolution agents, per the benefits plan.

To file a Cadence Bank settlement claim form online, class members can head to this page and log in using the unique ID and PIN found on their received copy of the settlement notice. Alternatively, class members may download a PDF claim form from the site to print, fill out and return by mail to the address of the settlement administrator listed on the second page of the document.

All MOVEit Cadence Bank data breach settlement claim forms must be submitted online or by mail by June 4, 2026.

Finally, as part of the settlement, Cadence Bank has agreed to invest at least $3.5 million into data security enhancements or related technology for its systems, to be paid out separately from the settlement fund.

The court will determine whether to grant final approval to the Cadence Bank class action settlement following a hearing on July 9, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Cadence Bank class action lawsuit alleged that the financial institution failed to protect the private information of its customers after MOVEit, a file transfer application used by the bank, experienced a massive data breach sometime between May 28, 2023 and May 31, 2023.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.