Finastra reaches $3.13 million settlement in data breach lawsuit

Finastra has agreed to pay $3.13 million to settle a class action lawsuit stemming from a 2024 data breach that exposed the personal information of hundreds of thousands of people.

 

In February 2025, Finastra said it detected suspicious activity on November 7 and found that an unauthorised third party had accessed its Secure File Transfer Platform between October 31 and November 8, 2024. The attacker downloaded certain files but did not deploy malware, alter customer files, or access files beyond those exfiltrated.

 

The compromised data varied among individuals and included personal information such as names and financial account numbers contained in customer and technical support files.

 

Following the cyberattack, a class action lawsuit was filed in the Circuit Court for Broward County, Florida. The plaintiffs alleged that Finastra failed to adequately safeguard their personal information and lacked sufficient cybersecurity measures, which they contend contributed to the data breach.

 

Finastra denied the allegations of wrongdoing and negligence but agreed to settle the lawsuit to avoid the costs and risks associated with continued litigation and provide eligible class members with settlement benefits.

 

As part of the settlement, Finastra will create a $3.13 million settlement fund to pay eligible claims submitted by class members, in addition to covering settlement administration expenses, attorneys’ fees and costs, and any court-approved service awards.

 

Under the settlement, eligible class members who submit a valid and timely claim will receive one year of CyEx Financial Shield Complete, including financial fraud insurance of up to $1 million and monitoring for identity theft, fraudulent activity, unauthorised financial transactions, and personal information linked to high-risk transactions. The service also provides access to a fraud resolution agent if suspicious activity is detected.

 

The settlement also allows eligible individuals to claim up to $2,500 for documented out-of-pocket losses incurred between October 31, 2024, and November 27, 2026, including expenses related to identity theft or fraud, credit monitoring, credit freezes, replacing identification documents, and certain postage costs. Claimants must provide supporting documentation, such as bank statements or receipts.

 

Alternatively, class members may choose a one-time pro rata cash payment without providing documentation. The amount will depend on the remaining settlement funds and the number of valid claims submitted.