Nebraska’s Union Bank Agrees to $2.4 Million MOVEit Breach Settlement

A critical vulnerability discovered in Progress Software’s MOVEit file-transfer product in 2023 allowed hackers to steal sensitive data from thousands of organizations worldwide. Nebraska-based Union Bank and Trust was sued after customer information was exposed through the incident, underscoring how banks can face litigation, compliance costs and reputational damage even when a breach originates in software supplied by a third party.

Union Bank and Trust has reached a preliminary settlement of nearly $2.4 million over claims tied to the 2023 MOVEit breach. The agreement remains subject to court approval before taking effect. The proposed payout highlights the mounting indirect liability facing financial institutions when vendors fail to protect customer data, as well as the potentially significant cost of resolving class-action claims arising from widely used third-party technology.