Cash App Class Action Settlement 2024: When Will $2,500 Payouts Arrive?

December 25, 2024 Add Comment
Cash App Class Action Settlement 2024 When Will $2,500 Payouts Arrive
Cash App Class Action Settlement 2024 When Will $2,500 Payouts Arrive

Customers of Cash App were able to claim compensation from a $15 million settlement last month in response to complaints of poor security measures. Plaintiffs accused Block and Cash App Investing of negligence for failing to protect user data, resulting in unlawful access and transactions.

Although the companies denied any wrongdoing, they agreed to the settlement to avoid the uncertainties and expenses of litigation.

Eligible customers who experienced unauthorized account access or fraudulent transactions, or who were dissatisfied with how their complaints were handled between August 23, 2018 and August 20, 2024, may be eligible for up to $2,500 in out-of-pocket losses, as well as additional compensation for lost time and transaction losses. Claims needed to be submitted by November 18, 2024.

Cash App Class Action Lawsuit Overview

The lawsuit specifically addressed four incidents:

  • In 2022, a security incident occurred when a former Cash App Investing employee gained unauthorized access to critical client data.
  • Additional security vulnerabilities surfaced in 2023 when unauthorized users used recycled phone numbers to access Cash App accounts.

The plaintiffs claimed that these instances were the consequence of Cash App’s inability to maintain strong security protocols and respond adequately to customer concerns regarding illegal or fraudulent transactions.

This alleged carelessness and breach of duty resulted in significant financial losses and annoyance for many people.

Who is Eligible?

The Settlement Class includes those who:

  • Are you a current or previous customer of Cash App, Cash App Investing, their affiliates, parents, or subsidiaries?
  • Was your personal information, Cash App account, or Cash App Investing account accessed or obtained without permission?
  • Between August 23, 2018 and the notice date of August 20, 2024, you may have experienced unauthorized or fraudulent withdrawals or transfers of funds to or from your accounts, as well as failures to resolve issues in a Cash App account or any related financial account.

Understanding Settlement Benefits

The settlement offers numerous levels of compensation to class members, each meant to compensate a different type of damage caused by the alleged security failings.

Monetary Compensation

The Settlement Fund of $15 million is allocated to cover:

  • Attorney fees and legal charges.
  • Service payments to class representatives.
  • Administration fees for the settlement.
  • Direct reimbursement to class members who file valid and timely claims.

Categories of Compensation

  • Out-of-Pocket Losses:Individual applicants can receive compensation of up to $2,500 for expenses directly related to security events. This covers the cost of credit monitoring, identity theft insurance, credit freezes, payment card replacements, and any associated fees, such as overdraft charges that the bank does not reimburse.
  • Lost Time: Claimants can be reimbursed for up to three hours of missed time spent dealing with the aftermath of security incidents, which is calculated at a cost of $25 per hour.
  • Transaction Losses: Reimbursement for documented financial losses caused by unauthorized account activities. This involves monetary losses for which Cash App, insurance, or other financial institutions have not provided compensation.

Pro-Rata Distribution

If the total number of legitimate claims submitted exceeds the Net Settlement Amount, payouts to claimants will be decreased accordingly. If money remain after all claims are paid, the excess will be divided to the claimants or donated to a reputable charity, depending on the amount.

Cash App Settlement Claim Submission (Last Date Gone)

To benefit from the settlement, qualified class members must have filed a claim form by November 18, 2024.

The claim process was streamlined to be accessible online, but paper forms were also available for those who preferred to send their claims. Receipts, police reports, or correspondence describing the losses and efforts to address them were required to be attached to each claim type.

Cash App Settlement Payment Date: What’s next for the claimants?

The Court’s ruling, dated November 7, 2024, delayed certain deadlines and postponed the final hearing for January 13, 2025. You can view the entire order here. Once the final hearing is completed and the settlement is accepted, the corporation will send confirmation of the payment schedule.

Based on previous settlements with other technology corporations, you should expect to be compensated 9 to 12 months after the final hearing.

Claimants can contact the Cash App Security Settlement Administrator at their assigned phone number (1-866-615-9740) or address for more information or assistance with the settlement.

Claimants must update their contact information if it changes after submitting a claim to ensure they get any benefits to which they are entitled.

This resolution is an important step toward resolving the claimed security flaws at Cash App and provides a mechanism for affected users to get financial compensation and closure. It also emphasizes the significance of strong security protocols and effective customer service standards in the digital financial business.

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