Conduent to Pay $80 Million to Settle Data Breach Class Action

Conduent Incorporated has agreed to fund $80 million into a settlement fund to resolve the consolidated class action lawsuit stemming from its January 2025 cybersecurity incident. The company, along with Conduent Business Services, LLC and Conduent State & Local Solutions, Inc., entered into a Class Action Settlement Agreement and Release with plaintiffs on October 16, 2026. The agreement is currently pending approval by the U.S. District Court for the District of New Jersey.

The $80 million figure represents Conduent's total monetary obligation under the agreement and is inclusive of all costs. The funds will cover recovery amounts for class members, the costs of credit and medical data monitoring, fees for plaintiffs' counsel, and the expenses associated with administering the settlement. Once the court grants final approval, the agreement will release Conduent, its affected clients, and those clients' affected customers from claims arising out of or relating to the cyber incident.

Conduent stated that the settlement agreement does not constitute an admission of fault or liability, which the company explicitly denies. The filing notes that the company maintains cyber insurance and does not expect the settlement to have a material impact on its financial position, results of operations, or cash flows. This assessment is subject to the forward-looking statements included in the report, which identify risks such as the court potentially altering or failing to approve the agreement, uncertainties regarding other legal proceedings or government investigations, and the availability and timing of cyber insurance recovery.

The lawsuit, captioned In re: Conduent Business Services Data Breach Litigation, arises directly from the previously disclosed January 2025 cybersecurity incident. The full text of the Class Action Settlement Agreement and Release is filed as Exhibit 10.1 to the Form 8-K and is incorporated by reference into the current report. Anna Novoseletsky, Executive Vice President, General Counsel and Secretary of Conduent Incorporated, authorized the filing on October 16, 2026.