diff --git a/Gemfile.lock b/Gemfile.lock
index e52d4cb..cff72c0 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    entitlements-app (1.2.0)
+    entitlements-app (1.2.1)
       concurrent-ruby (~> 1.3, >= 1.3.1)
       faraday (~> 2.0)
       logger (~> 1.6)
diff --git a/lib/entitlements/data/groups/cached.rb b/lib/entitlements/data/groups/cached.rb
index 66663f8..555a510 100644
--- a/lib/entitlements/data/groups/cached.rb
+++ b/lib/entitlements/data/groups/cached.rb
@@ -51,6 +51,8 @@ def self.load_caches(dir)
             Entitlements.cache[:predictive_state][:by_ou][ou] ||= {}
             Entitlements.cache[:predictive_state][:by_ou][ou][identifier] = member_set
             Entitlements.cache[:predictive_state][:by_dn][dn] = { members: member_set, metadata: metadata }
+          rescue => e
+            raise "Failed to load predictive state cache file #{filename}: #{e.message}"
           end
 
           Entitlements.logger.debug "Loaded #{Entitlements.cache[:predictive_state][:by_ou].keys.size} OU(s) from cache"
diff --git a/lib/version.rb b/lib/version.rb
index 34d3bc2..412c637 100644
--- a/lib/version.rb
+++ b/lib/version.rb
@@ -2,6 +2,6 @@
 
 module Entitlements
   module Version
-    VERSION = "1.2.0"
+    VERSION = "1.2.1"
   end
 end
diff --git a/spec/unit/entitlements/data/groups/cached_spec.rb b/spec/unit/entitlements/data/groups/cached_spec.rb
index a7a41d7..25ce6ea 100644
--- a/spec/unit/entitlements/data/groups/cached_spec.rb
+++ b/spec/unit/entitlements/data/groups/cached_spec.rb
@@ -17,6 +17,18 @@
       end
     end
 
+    context "with a file that fails to parse" do
+      let(:dir) { fixture("predictive-state/failing-cache") }
+
+      it "raises with a custom message" do
+        expect(logger).to receive(:debug).with("Loading predictive update caches from #{dir}")
+
+        expect do
+          described_class.load_caches(dir)
+        end.to raise_error(RuntimeError, /Failed to load predictive state cache file/)
+      end
+    end
+
     context "with valid predictive state directory" do
       let(:dir) { fixture("predictive-state/cache1") }
 
diff --git a/spec/unit/fixtures/predictive-state/failing-cache/cn=admin,ou=org,ou=fakegithub,dc=github,dc=fake b/spec/unit/fixtures/predictive-state/failing-cache/cn=admin,ou=org,ou=fakegithub,dc=github,dc=fake
new file mode 100644
index 0000000..6a0de29
--- /dev/null
+++ b/spec/unit/fixtures/predictive-state/failing-cache/cn=admin,ou=org,ou=fakegithub,dc=github,dc=fake
@@ -0,0 +1 @@
+metadata_is_missing_a_value