Infosys agrees to pay $17.5 million to settle pending lawsuits over McCamish Systems 2023 cyber incident

Infosys announced on Friday, March 14, 2025, that it had reached an agreement with the plaintiffs of lawsuits pending against its US unit over the 2023 cyber incident. Infosys McCamish Systems has agreed to pay $17.5 million into a fund to settle all the pending class action lawsuits and resolve all allegations made in the incident.

In November 2023, the country's second-largest software services major disclosed that Infosys McCamish Systems was impacted by a cyber security event, resulting in the non-availability of certain applications and systems.

In April last year, Infosys said McCamish, in coordination with its third-party vendor eDiscovery, identified up to 6.5 million individuals whose information was subject to unauthorized access and data exfiltration in the incident. 

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Infosys to settle lawsuits over McCamish Systems

“…In respect of six class action lawsuits that were filed in the US, we would like to update that Infosys has reached an agreement in principle with the plaintiffs of these lawsuits pending against Infosys McCamish Systems LLC and a few McCamish’s customers. This proposed agreement would settle all the pending class action lawsuits and resolve all allegations made in this matter,” said Infosys.

"On March 13, 2025, McCamish and the plaintiffs engaged in mediation, resulting in an agreement in principle, which sets forth the terms of a proposed settlement of class action lawsuits against McCamish, as well as class action lawsuits that have been filed against McCamish’s customers," said Infosys.

"Under the proposed settlement terms, McCamish has agreed to pay $17.5 million into a fund to settle these matters. The proposed terms are subject to confirmation and due diligence by the plaintiffs, finalization of the settlement agreement terms, and preliminary and final court approval," said Infosys in a regulatory filing to the stock exchanges on Friday.

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"Once approved, the settlement will resolve all allegations in the class action lawsuits without admitting liability," it added. In a separate filing, Infosys announced that it would expand its long-standing strategic collaboration with Citizens, a US financial institution. 

Under the pact, Citizens will leverage Infosys' domain expertise in financial services and technologies, including AI, cloud, and automation, to develop cloud-native domain platforms and achieve data centre exit.

"This AI-enabled transformation will also foster an ecosystem of valuable fintech and hyperscaler collaborations, delivering hyper-personalised AI-powered customer experiences and enhancing operational resilience and stability," said Infosys.

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In the last five years, Citizens and Infosys have achieved several key milestones: they developed and implemented a comprehensive strategy and blueprint for domain-centric platforms, established a robust data lake, developed enterprise APIs, reached 90 per cent in test automation, migrated critical workloads to the cloud while maintaining operational resilience, and rationalised applications and tools.