A United States court has granted its final approval for a proposed settlement in a series of class action lawsuits targeting Infosys McCamish Systems, a subsidiary of the Indian IT giant Infosys. The development was disclosed by Infosys in a filing to the Bombay Stock Exchange (BSE) on Saturday.
The $17.5 Million Settlement Agreement
Under the terms of the court-approved resolution, Infosys McCamish Systems has agreed to establish a settlement fund of $17.5 million. This fund is intended to resolve all pending class action lawsuits that stemmed from a significant cybersecurity incident in 2023. The lawsuits had identified the Infosys subsidiary as the primary source of the data breach.
Infosys clarified in its statement that the settlement does not constitute an admission of liability. The company stated that if the agreement is not appealed within a period of 30 days, it will become effective and will resolve all allegations made in the litigation.
Roots of the Legal Action: The 2023 Data Breach
The legal troubles for Infosys McCamish originated from a cybersecurity event that was first detected in late 2023. According to official notifications, the breach occurred on October 29, 2023, and was discovered the very next day, on October 30, 2023.
The scale of the incident came into sharper focus in February 2024, when banking behemoth Bank of America publicly named Infosys McCamish Systems as the source of a data breach. The bank reported that the incident impacted a total of 57,028 of its customers.
Resolution and Moving Forward
The Bengaluru-headquartered IT major, Infosys, has indicated that this proposed agreement is designed to bring a comprehensive end to the legal challenges. It is expected to settle all the pending class action lawsuits and conclusively resolve the allegations raised in this matter.
For Infosys McCamish and its parent company, the court's final approval marks a critical step toward closing a costly and reputationally damaging chapter. While the financial impact is quantified at $17.5 million, the settlement allows the firms to avoid a prolonged and uncertain legal battle in US courts. The focus now shifts to the 30-day appeal window, after which the settlement is expected to be implemented.
