AMERICANS hit by a major data breach could be in line for automatic $10,000 payments under a whopping $5.25 million settlement.
Cadence Bank has agreed to dish out millions to resolve claims it failed to protect customers’ personal information during a cyberattack on file transfer software MOVEit.
The settlement covers customers who were notified by Cadence Bank that their personal info was included in files affected by the data breach between May 28 and May 31, 2023.
The bank, which operates across the Midwest and Southeast, alerted customers in September 2023 that their information may have been compromised.
MOVEit is a file transfer platform used by companies to securely share sensitive information.
But the software was targeted in a widespread cyberattack in May and June 2023 that exposed data belonging to numerous organisations, including Cadence Bank.
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Customers claimed the bank failed to take reasonable steps to protect their information and could have prevented the breach by implementing stronger cybersecurity measures.
Cadence Bank has denied any wrongdoing but agreed to the $5.25 million settlement to avoid the cost and uncertainty of further proceedings.
Under the terms of the deal, eligible class members can claim up to $10,000 for extraordinary losses linked to the breach.
These losses include unreimbursed monetary losses, professional fees and credit repair expenses.
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What is a class action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Customers can also seek reimbursement of up to $2,500 for ordinary losses, including bank fees, communication charges and credit-related expenses.
In addition, claimants can recover compensation for up to four hours spent dealing with the effects of the breach, paid at a rate of $25 per hour.
Those who did not experience any financial losses as a result of the incident can instead receive a flat cash payment of $100.
All eligible class members are also entitled to two years of free credit monitoring and identity theft protection services.
To receive compensation, claimants must submit supporting documentation, such as bank statements, invoices, receipts or telephone records.
Self-prepared documents alone will not be accepted as proof, although they may be used to provide additional context alongside other evidence.
The settlement applies to individuals who received notice from Cadence Bank that their personal information was included in files affected by the MOVEit breach.
The deadline to submit a claim form is June 4 and a final approval hearing is scheduled for July 9.
Payments and benefits will be distributed if the settlement receives final court approval.