Cadence Bank Data Breach $5.25M Settlement, Are You Eligible to Claim?

Cadence Bank has reached a $5,250,000 class action settlement to resolve allegations that it failed to protect customer data during a May 2023 breach of the MOVEit file transfer application. The settlement benefits individuals who were notified by Cadence Bank that their personal information was compromised. Eligible class members can claim cash reimbursements up to $12,500 for documented losses or a flat $100 alternative payment. The claim deadline is June 4, 2026.

Field	Detail
Settlement Amount	$5.25 Million
Claim Deadline	June 4, 2026
Who Qualifies	Individuals notified by Cadence Bank of the May 2023 MOVEit breach
Payout Per Person	Up to $12,500 (losses) or $100 (alternative payment)
Proof Required	Yes (for loss reimbursement) / No (for $100 payment)
Settlement Status	Preliminarily Approved
Administrator	MOVEit Cadence Bank Data Breach Settlement
Official Website	MOVEitCadenceSettlement.com

Current Status & What Happens Next

• Litigation Stage: The settlement received preliminary approval on January 5, 2026, and is currently in the claims-filing period.
• Important Deadlines: Class members must exclude themselves or object to the deal by May 5, 2026.
• Payment Timeline: A final approval hearing is scheduled for July 9, 2026, with payments expected to be distributed several months after that date, pending any appeals.

What Is the Cadence Bank Lawsuit About?

The lawsuit stems from a global cybersecurity incident involving the MOVEit Transfer application, a third-party software used by Cadence Bank to move sensitive files. Between May 28 and May 31, 2023, cybercriminals exploited a vulnerability in the software to access confidential data. Cadence Bank began notifying approximately 869,411 affected individuals about the breach in September 2023.

Plaintiffs filed a class action alleging that Cadence Bank was negligent in its data security practices. The complaint claimed the bank failed to implement reasonable cybersecurity measures and waited too long to inform customers that their Social Security numbers and financial details were exposed. While Cadence Bank denies any wrongdoing and maintains it followed all security protocols, it agreed to the $5.25 million settlement to end the litigation.

As part of the agreement, Cadence Bank has also committed to investing at least $3.5 million into its own data security enhancements. This investment is separate from the $5.25 million cash fund used to pay consumer claims and legal fees.

Related article: FedEx Class Action, Customers Sue to Recover Import Duties Declared Unlawful by the Supreme Court

Who Is Eligible to File a Claim?

Eligibility is strictly tied to the notification process conducted by the bank.

• You may qualify if you were a resident of the United States who was notified by Cadence Bank that your personal identifying information was included in files affected by the MOVEit data breach.
• You may qualify if you received a notice via mail or email regarding the “MOVEit Data Breach” or “MOVEit Security Incident” from Cadence Bank.
• You may qualify if your data was accessed specifically between the dates of May 28, 2023, and May 31, 2023.

How Much Can You Receive?

The settlement provides three primary types of benefits. Class members can choose between documented reimbursement or a simplified cash payment.

1. Reimbursement for Ordinary Losses (Up to $2,500)

You can claim up to $2,500 for unreimbursed out-of-pocket expenses related to the breach, including:

• Bank fees and communication charges (data/phone).
• Fees for credit reports or identity theft insurance purchased between May 31, 2023, and June 4, 2026.
• Lost Time: Reimbursement for up to four hours spent responding to the breach at a rate of $25 per hour (max $100). This counts toward the $2,500 cap.

2. Reimbursement for Extraordinary Losses (Up to $10,000)

If you were a victim of actual identity theft or fraud, you can claim up to $10,000. You must prove the loss was more likely than not caused by the Cadence Bank breach and occurred between May 31, 2023, and June 4, 2026.

3. Alternative Cash Payment ($100)

In lieu of claiming documented losses, you may choose a flat $100 cash payment. This amount may be increased or decreased (pro-rata) depending on the total number of valid claims filed.

4. Credit Monitoring Services

Regardless of which cash option you choose, all class members can claim two free years of three-bureau credit monitoring and identity theft protection services.

How to File a Claim

The claims process is handled entirely through the court-appointed administrator.

1. Visit the official site: Go to MOVEitCadenceSettlement.com.
2. Enter your Unique Class Member ID: This is located on the notice you received in the mail or email.
3. Choose your benefit: Select whether you are filing for documented losses or the $100 alternative payment.
4. Upload documentation: If claiming losses, upload copies of bank statements, receipts, or invoices showing the expenses.
5. Provide payment info: Choose how you want to be paid (Check, Venmo, PayPal, etc.).
6. Submit and save: Submit the form and keep your confirmation number for your records.

Estimated time to complete: 5–10 minutes.

 Important Deadlines & Dates

Milestone	Date
Preliminary Approval	January 5, 2026
Claims Period Opens	January 2026
Claim Filing Deadline	June 4, 2026
Opt-Out Deadline	May 5, 2026
Objection Deadline	May 5, 2026
Final Approval Hearing	July 9, 2026
Expected Payment Date	Late 2026 / Early 2027

Frequently Asked Questions

Do I need a lawyer to file a claim?

No. You do not need to hire your own lawyer to participate in this settlement. Class counsel has already been appointed by the court to represent the entire group. You only need a lawyer if you intend to sue Cadence Bank individually.

Is this settlement legitimate?

Yes. This is a court-authorized settlement in the case Pratt v. Cadence Bank, Case No. 1:23-cv-12996-ADB, handled by the U.S. District Court for the District of Massachusetts. The official administrator is MOVEit Cadence Bank Data Breach Settlement.

When will I receive my payment?

Payments will not be sent until after the final approval hearing on July 9, 2026. If the judge approves the deal and there are no appeals, checks and electronic payments are typically issued within 60 to 90 days.

What if I missed the claim deadline?

If you do not submit a claim by June 4, 2026, you will lose your right to receive a payment. You will also be barred from suing Cadence Bank for these specific claims in the future.

Will this settlement payment affect my taxes?

Generally, settlement payments for out-of-pocket losses or identity theft reimbursements are not considered taxable income. However, the alternative cash payment or interest might be. You should consult with a tax professional regarding your specific situation.

How do I know if I am in the “Class”?

If you received a notice with a Class Member ID, you are officially part of the settlement. If you did not receive a notice but believe your data was affected, you can contact the administrator at 833-647-9001.

What documentation do I need for the $2,500 claim?

You must provide “reasonable documentation” of your expenses. This includes bank statements showing unauthorized charges, receipts for credit monitoring services, or invoices from professionals who helped you resolve identity theft issues.

Last Updated: March 23, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.