Conduent Puts $80 Million Price Tag on Data Breach Settlement
Company Background
Conduent is a Florham Park, New Jersey-based business process outsourcing company — handling government benefit disbursements, healthcare administration, commercial customer service, and transportation payments — with roughly 46,000 employees and a market capitalization of approximately $244 million. Revenue has been declining: full-year 2025 GAAP revenue was $3.04 billion, down 9.4% from 2024, and the company has reported GAAP net losses in each of the last several quarters, including $(170) million for full-year 2025 and $(116) million for the second quarter of 2026.
CEO Harsha Agadi, who replaced Clifford Skelton in January 2026 after previously serving as board chairman, has framed the company's strategy around five priorities: cutting costs, simplifying the portfolio, converting the sales pipeline into revenue, enforcing financial discipline, and increasing execution speed. The transformation has involved selling the Public Transit business to Modaxo for $140 million — completed October 1, 2026 — and agreeing to sell the Tolling business to Quarterhill Inc. for $70 million plus a 7% equity stake, a deal that has not yet closed. As of June 30, 2026, Conduent held $228 million in cash and carried $718 million in total debt, including $520 million in senior notes due in 2029.
What Was Disclosed
Conduent entered into a Class Action Settlement Agreement and Release on October 16, 2026, resolving the consolidated lawsuit In re: Conduent Business Services Data Breach Litigation, pending in the U.S. District Court for the District of New Jersey. The case stems from a cybersecurity incident that occurred in January 2025. Under the agreement, Conduent will fund an $80 million non-reversionary settlement — meaning unfunded portions cannot revert to the company — covering class member recoveries, credit and medical data monitoring costs, plaintiffs' counsel fees, and settlement administration expenses. The company describes the $80 million as its "total monetary obligation under the Settlement Agreement."