Infosys Settles U.S. Unit Cyber Incident Lawsuits for $17.5 Million

Infosys Settles U.S. Unit Cyber Incident Lawsuits for $17.5 Million

Settlement Addresses 2023 Data Breach Affecting Millions

AuthorPavitra ShettyMar 15, 2025, 8:20 AM

Infosys, a leading Indian IT services provider, has agreed to a $17.5 million settlement to resolve lawsuits stemming from a 2023 cyber incident involving its U.S. subsidiary, Infosys McCamish Systems. The breach led to unauthorized access and data exfiltration, impacting up to 6.5 million individuals. The settlement aims to address all pending class-action lawsuits and related allegations linked to the incident.

Background of the Cyber Incident

In November 2023, Infosys disclosed that Infosys McCamish Systems experienced a cybersecurity event resulting in the unavailability of certain applications and systems. Subsequent investigations revealed that, in coordination with a third-party vendor, eDiscovery, unauthorized access had occurred, compromising personal information of millions. 

Settlement Details and Implications

The $17.5 million settlement will be allocated to a fund designed to resolve all pending class-action lawsuits and allegations related to the cyber incident. This resolution underscores the critical importance of robust cybersecurity measures and proactive incident response strategies within organizations handling sensitive data. It also highlights the potential financial and reputational repercussions companies may face in the aftermath of data breaches. 

Looking Ahead: Strengthening Cybersecurity

In light of this incident, Infosys has likely undertaken measures to bolster its cybersecurity infrastructure to prevent future breaches. This case serves as a cautionary tale for other organizations about the necessity of implementing comprehensive data protection strategies and maintaining vigilance against evolving cyber threats.

The settlement reflects Infosys's commitment to resolving the issues arising from the 2023 cyber incident and emphasizes the ongoing need for enhanced cybersecurity protocols in the IT services industry.

 

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