Cash App users affected by security breaches stand to gain from a $15 million class-action settlement. The settlement, resulting from incidents like unauthorized access to accounts and mishandling of complaints, could provide impacted customers with compensation of up to $2,500 each. Those with valid claims involving fraudulent transactions or unauthorized access to their accounts between August 23, 2018, and August 20, 2024, are eligible to file for reimbursement.
The class-action lawsuit highlighted breaches such as a 2021 incident where a former employee improperly downloaded user reports and another breach in 2023 involving unauthorized access to accounts through linked phone numbers. Plaintiffs alleged that Cash App and its parent company, Block, failed to implement adequate controls against unauthorized access and mishandled customer complaints regarding the security breaches and fraudulent transactions. As part of the settlement, Cash App and Block have committed to enhancing data security measures.
While Cash App and Block deny any wrongdoing, they have agreed to settle the lawsuit by paying $15 million. This amount, apart from covering legal fees and administrative expenses, will be distributed among impacted customers who submit valid claims. To file a claim, customers must meet the eligibility criteria and submit necessary documentation to support their claims for reimbursement. The deadline for submitting claims under the settlement is November 18.
Customers who opt for the settlement may receive compensation for various out-of-pocket expenses incurred as a result of the security breaches. These expenses could include costs related to credit monitoring, identity theft insurance, replacing payment cards, closing and opening bank accounts, as well as late payment fees. In addition to reimbursement for expenses, users can also claim for up to three hours of lost time at $25 per hour, for a maximum of $75, provided they submit required documentation. Customers affected by transaction losses can file claims with supporting documents like a police report to seek reimbursement. If the settlement fund is insufficient to fully compensate all claimants, payments will be made on a pro rata basis.
Aside from participating in the settlement, users have the option to exclude themselves from it by opting out before November 1. This choice enables them to pursue individual legal actions against the defendants in the future. Furthermore, customers can voice objections to the settlement agreement by submitting written statements to the court before the stipulated deadline. Choosing to take no action means forgoing any potential payments and relinquishing the right to engage in further litigation concerning claims covered by the settlement terms.