In August 2024, Cash App and its parent company, Block Inc., agreed to a $15 million class-action settlement following allegations of inadequate security measures that led to unauthorized access and fraudulent transactions. This settlement aims to compensate affected users with payouts of up to $2,500.
Contents
Understanding the Cash App Class Action Settlement
The lawsuit alleged that Cash App failed to implement robust security protocols, resulting in unauthorized access to user accounts and personal information. Notable incidents include:
- 2022 Breach: A former employee accessed sensitive customer data without authorization.
- 2023 Breach: Unauthorized users gained access to accounts using recycled phone numbers.
These breaches led to significant financial losses and inconvenience for numerous users.
Eligibility Criteria
To be eligible for compensation, individuals must meet the following criteria:
- Customer Status: Current or former customer of Cash App and/or Cash App Investing, including affiliates, parents, or subsidiaries.
- Unauthorized Access: Personal information or account accessed without authorization.
- Fraudulent Activity: Experienced unauthorized withdrawals or transfers between August 23, 2018, and August 20, 2024.
Settlement Benefits
The $15 million Settlement Fund is allocated to cover:
- Attorneys’ Fees and Legal Costs: Compensation for legal representation.
- Service Payments: Payments to class representatives.
- Administration Costs: Expenses related to managing the settlement.
- Direct Compensation: Payments to class members with valid claims.
Categories of Compensation
- Out-of-Pocket Losses: Up to $2,500 for expenses such as credit monitoring, identity theft insurance, credit freeze, replacement of payment cards, and associated fees like unrefunded overdraft charges.
- Lost Time: Reimbursement for up to three hours spent addressing security incidents, compensated at $25 per hour.
- Transaction Losses: Reimbursement for documented financial losses from unauthorized account activities not compensated by Cash App, insurers, or other financial institutions.
Pro-Rata Distribution
If valid claims exceed the Net Settlement Amount, payments to each claimant will be reduced proportionally. If funds remain after all claims are satisfied, the surplus will be distributed among claimants or donated to a suitable charity, depending on the amount.
Claim Submission Process
Eligible class members were required to submit a claim form by November 18, 2024. The process was accessible online, with paper forms available for mail submissions. Supporting documentation, such as receipts, police reports, or correspondence evidencing losses and efforts to resolve them, was necessary.
Settlement Payment Timeline
A final approval hearing for the Cash App settlement is scheduled for January 13, 2025. If approved, payments will be distributed shortly after this date. Based on trends from other tech company settlements, claimants may expect to receive payments within 9 to 12 months after the final hearing.
Contact Information
For further assistance or additional information about the settlement, claimants can contact the Cash App Security Settlement Administrator at 1-866-615-9740 or via mail at:
Cash App Security Settlement Administrator 1650 Arch Street, Suite 2210 Philadelphia, PA 19103
Claimants should update their contact information if it changes after submitting a claim to ensure they receive any eligible payments.
| Category | Details |
|---|---|
| Settlement Amount | $15 million |
| Eligibility Period | August 23, 2018 – August 20, 2024 |
| Claim Deadline | November 18, 2024 |
| Compensation Limits | Up to $2,500 for out-of-pocket losses; up to 3 hours of lost time at $25/hour; documented transaction losses |
| Final Approval Hearing | January 13, 2025 |
| Contact Information | 1-866-615-9740; Cash App Security Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103 |
Who qualifies for the Cash App settlement?
Current or former Cash App and/or Cash App Investing customers who experienced unauthorized account access or fraudulent transactions between August 23, 2018, and August 20, 2024.
What is the maximum compensation available?
Up to $2,500 for out-of-pocket losses, reimbursement for up to three hours of lost time at $25 per hour, and documented transaction losses.
When is the final approval hearing?
The final approval hearing is scheduled for January 13, 2025.
One thought on “Cash App Class Action Settlement 2024: When Will $2,500 Payouts Arrive?”
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