Following the announcement of a settlement in a class-action lawsuit concerning Cash App, millions of users are expected to receive payments in 2025. Cash App and its parent company, Block, purportedly breached user data and monetarily accessed user accounts over the years. Consequently, Cash App and Block are ordered to a 15 million dollar settlement.
What Is the Cash App Settlement About?
Users of Cash App are claiming the company did a poor job in securing users’ accounts, and as a result of breached security protocols, fraud and access to accounts escalated in 2022. One of the more pertinent examples is the 2022 data breach perpetrated by an employee, as well as the use of recycled phone numbers to access accounts in 2023. Users are misrepresented and fraudulently lied to concerning the breach of their data. Thus, filing a lawsuit demanding accountability.
Who is Eligible for the $2,500+ Payout?
You may be eligible for the payout if you were using Cash App or Cash App Investing between August 23, 2018 and August 20, 2024 and you experienced economic harm, unauthorized transactions, or if your account or personal information was accessed without your consent. For you to be eligible, you will need to provide evidence for the expenses you incurred as a result of your losses. Up to 2,500 would be granted and compensation for expenses that were cumulatively under three hours would be paid, alongside the compesation for the main payout.
How to Check Your Eligibility and Claim
As of this writing, it is not possible to submit a claim as the November 18 date has passed. For those who filed their claims on time, they will be notified of their claim status through email and physical mail. For those who have not received any form of communication, they are able to check their status through claims and support centers. Cash App will not be a form through which payments are issued but payments can be issued through prepaid Mastercards, direct deposits, Venmo, Zelle and paper check.
When Will Payments Arrive?
Answering this question is fairly straightforward. Once all claims are verified and administrative procedures are completed, distribution of funds is expected to begin in middle to late 2025. However, the timeline is subject to appeals and additional processing time. Impacted users should prepare to receive funds by the year of 2025.
Why This Settlement Matters
It raises the most important and continuous issues of concern around the security of data and the protection of its users in and around the fintech apps. Here, a positive measure is that users are provided a way to claim lost funds due to insufficient security services. Also, the Cash App case shows a growing legal concern about the way technology companies control and disclose information, including the use of automated calls and referrals.
