December 19, 2025
Cadence Bank has reached a $5.25 million deal to end negligence claims it faced in multidistrict litigation over the May 2023 breach of file transfer application MOVEit, a consumer affected by the breach has informed a Boston federal judge.
In a motion Wednesday, plaintiff Tammy Pratt asked U.S. District Judge Allison D. Burroughs to grant preliminary approval to the deal on behalf of a class of those notified by Cadence that their personally identifiable information was in files affected by the MOVEit data breach.
Pratt said Wednesday that the settlement agreement, which the parties executed on Dec. 15, is “fair, reasonable, and adequate as it provides immediate and guaranteed relief in the face of difficult, extensive, and expensive litigation that poses a significant risk that plaintiff and the settlement class might recover nothing from Cadence should litigation continue.”
Under the terms of the proposed settlement, class members can submit claims for reimbursement of ordinary losses up to $2,500, extraordinary losses up to $10,000 or an alternative $100 payment.
The deal was designed to give equal treatment to those who hadn’t incurred out-of-pocket losses and those who incurred expenses in connection with the breach requiring individualized compensation, the motion states, noting that the structure is similar to other court-approved allocation plans in other data breach cases.
Cadence is among over 100 commercial and government entity defendants facing liability in the multidistrict litigation stemming from the May 2023 breach.
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The plaintiffs are represented by Kristen A. Johnson of Hagens Berman Sobol Shapiro LLP, E. Michelle Drake of Berger Montague PC, Gary F. Lynch of Lynch Carpenter LLP, Douglas J. McNamara of Cohen Milstein Sellers & Toll PLLC, Karen H. Riebel of Lockridge Grindal Nauen PLLP and Charles E. Schaffer of Levin Sedran & Berman LLP.
Read Cadence Bank Seeks 1st Nod for $5.25M Data Breach Deal.