Customers of Cash App may now be eligible to claim compensation from a $15 million settlement due to allegations of inadequate security measures.
The lawsuit accused Block (formerly Square) and Cash App Investing of negligence in protecting user data, leading to unauthorized access and transactions. While the companies deny any wrongdoing, they agreed to settle the case to avoid the expenses and uncertainty of litigation.
Eligible customers who experienced unauthorized account access, fraudulent transactions, or dissatisfaction with complaint handling between August 23, 2018, and August 20, 2024, can claim up to $2,500 in compensation for out-of-pocket losses. Claims must be submitted by November 18, 2024.
Background of the Class Action Lawsuit
The settlement stems from a class action lawsuit filed by plaintiffs Michelle Salinas, Raymel Washington, and Amanda Gordon. The plaintiffs claimed that Cash App failed to implement proper security measures, leading to:
- A 2022 breach, where a former Cash App employee accessed user data without authorization.
- A 2023 incident, where unauthorized users accessed accounts using recycled phone numbers.
The lawsuit accused Cash App of failing to safeguard user data and mishandling customer complaints about fraudulent transactions. Despite denying these allegations, Cash App agreed to settle to avoid prolonged litigation.
Who is Eligible for the Settlement?
You are eligible to file a claim if you:
- Are a current or former customer of Cash App or Cash App Investing.
- Had your personal information, Cash App, or Cash App Investing account accessed without authorization.
- Experienced unauthorized withdrawals or transfers between August 23, 2018, and August 20, 2024.
Compensation and Categories of Benefits
The $15 million settlement fund is divided into the following categories:
- Out-of-Pocket Losses: Claim up to $2,500 for losses directly tied to unauthorized access. This may include fees for credit monitoring, identity theft insurance, overdraft charges, and card replacement costs.
- Lost Time: Receive $25 per hour for up to three hours of time spent dealing with the security breach and its fallout.
- Transaction Losses: Get reimbursed for documented losses that have not been refunded by Cash App or other financial institutions.
How to File a Claim
To file a claim, follow these steps:
- Identify Eligibility: Ensure you meet the eligibility criteria.
- Gather Documentation: Collect any necessary supporting documents, such as receipts, police reports, or bank statements showing the losses.
- Submit the Claim Form: File the claim online or by mail by November 18, 2024.
Pro-Rata Distribution
If the total valid claims exceed the available settlement funds, compensation to each claimant may be reduced proportionally. If there is any leftover money, it will either be distributed among claimants or donated to a charity.
Key Deadlines and Contact Information
- Claim Deadline: November 18, 2024
- Payment Distribution: After the claims process is complete
- For More Information: Visit the Cash App Security Settlement Administrator website or call the designated number for additional support.
The $15 million Cash App settlement allows affected customers to receive compensation for losses incurred due to security breaches.
By following the steps outlined, eligible customers can file their claims before the deadline and potentially receive up to $2,500.
The settlement also highlights the importance of robust security measures in protecting users’ personal and financial data.
FAQs
What is the Cash App settlement amount?
The settlement is $15 million, aimed at compensating users affected by unauthorized access to their Cash App accounts.
How much can I claim?
You can claim up to $2,500 for out-of-pocket losses and additional compensation for lost time and transaction losses.
Who is eligible for the settlement?
Any Cash App or Cash App Investing user who experienced unauthorized account access or fraudulent transactions between August 23, 2018, and August 20, 2024.
How do I submit a claim?
You can submit a claim online or by mail by November 18, 2024. Supporting documentation is required.
When will I receive my settlement payment?
Payments will be distributed after the claims are processed, which may take several months.
