Conduent to pay $80M to settle 3rd-largest healthcare data breach

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Business services provider Conduent has agreed to pay $80 million to settle class action litigation over the third-largest healthcare data breach on record, which exposed data on about 62.2 million people.

Conduent signed the settlement Oct. 16 with plaintiffs in the U.S. District Court for the District of New Jersey, according to an SEC filing. The $80 million nonreversionary fund covers class member recoveries, credit and medical data monitoring, plaintiffs’ attorney fees and administration costs, and it is the company’s total monetary obligation.

If approved, the agreement also releases Conduent’s affected clients and those clients’ affected customers from claims tied to the incident. Conduent denies fault, and the deal still needs court approval. The company said it maintains cyber insurance and does not expect the settlement to have a material financial impact.

An unauthorized third party accessed Conduent’s network from Oct. 21, 2024, to Jan. 13, 2025, taking names, addresses, birth dates, medical information, health insurance information and Social Security numbers. The SafePay ransomware group claimed it stole 8.5 terabytes of data.

The settlement divides the class into about 40 million people whose data sat in complex backup files and about 22 million whose data was readily accessible. All class members can claim a year of credit monitoring and up to $3,500 for documented losses, and the second group can also claim pro rata cash payments. Plaintiffs’ attorneys are seeking 34% of the fund.

Conduent provides front- and back-office services to clients including payers, several of which were affected by the breach. The Conduent incident was the largest healthcare data breach reported in 2025, according to The HIPAA Journal.

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