Cash App, a popular mobile payment app, has settled a class-action suit for $15 million as of March 2025, being accused of data breaches that compromised user information. This settlement will allow eligible users to claim some compensation for losses arising from unauthorized access or fraudulent transactions on their accounts.
Settlement Background
The class-action suit stems from incidents during which unauthorized persons entered Cash App user accounts, resulting in financial losses and concerns over the security of data. Plaintiffs alleged that Cash App and its parent company Block Inc. failed to take proper security precautions to keep user data safe and failed to handle customer complaints on unauthorized transactions with care. Though Cash App and Block Inc. denied any wrongdoing, they reached a $15 million settlement to end the litigation.
Eligibility for Claims
To qualify for a claim, users must have had a Cash App account between August 23, 2018, and August 20, 2024, and satisfy any one of the conditions given below:
- Their personal information was unlawfully accessed.
- Unauthorized withdrawals or transfers were made from their Cash App accounts.
Eligible users are entitled to claim for the reimbursement of out-of-pocket expenses, transaction losses, and compensation for lost time for the purpose of rectifying those unauthorized activities.
How to File a Claim
Those affected must submit a claim form by November 18, 2024, if they wish to receive compensation. The claim form is available on the official reparations website: there, users can tell all about the losses they have incurred and present any supportive documentation. Monetary claims require supporting evidence like receipts, account statements, or communications concerning the claims of unauthorized activity.
How Much Compensation Would You Get?
The settlement entitles users to claim for:
- Out-of-Pocket Losses: Users may claim up to $2,500 for documented expenses incurred from unauthorized access to their accounts. Such expenses include credit monitoring and identity theft insurance costs, bank fees, and other expenses.
- Lost Time: Compensation is available for lost time for up to three hours at a rate of $25 per hour, totaling a maximum of $75. This lost time is related to activities to resolve unauthorized access or fraudulent transaction matters.
- Transaction Losses: Users may also seek to claim for any direct financial losses suffered as a result of unauthorized transactions, with appropriate documentation such as police reports or correspondence with financial institutions.
When Are the Payments Made?
A final hearing on the approval of the settlement is being held on December 16, 2024. If approval is granted, payments to eligible claimants will be distributed during the following months. Claimants should check the official settlement website for information on the approval process and payment times.
Procedure to File a Claim
The authorized settlement website is the place to access and fill the claim form.
- Enter the Necessary Information: The claim form demands personal details, cash app account details, and a description of unauthorized access or fraudulent transactions.
- Supporting Documentation: Such documentation can include bank statements, receipts, or correspondence that support the claim.
- Claim Submission: All completed forms and attachments should be submitted by the deadline of November 18, 2024.
- By following these steps, eligible Cash App users can lodge their claims for compensation due to any losses related to the data breaches addressed in this settlement.