Some eligible Cash App users may receive payments of up to $2,500 from a $15 million class-action settlement tied to an alleged data breach.
The lawsuit followed an alleged 2021 incident involving the “unauthorized public release of the personally identifiable information of 8.2 million current and former Cash App Investing customers,” according to USA Today, which cited the class-action complaint filed in 2022.
Cash App, parent company Block Inc. and the plaintiffs reached an agreement in March 2024. However, neither company admitted wrongdoing or any violation of the law as part of the settlement, USA Today reported.
According to the settlement website, payments are expected to go out sometime this month to eligible users who submitted claims by the required deadline.
To qualify, users needed to report authorized or fraudulent withdrawals or transfers from their Cash App accounts between Aug. 23, 2018, and Aug. 20, 2024. Claims had to be filed by Nov. 18, 2024.
Eligible claimants could request reimbursement for up to $2,500 in out-of-pocket losses. Covered damages included missing funds from transactions and time spent addressing the breach, with lost time limited to three hours at a rate of $25 per hour.
The settlement website states that claims submitted after the November 2024 deadline will not be accepted.
Although the $15 million agreement is substantial, the fund must also cover attorneys’ fees and administrative expenses before payments are distributed for valid claims.
Launched in 2013, Cash App is a mobile financial service that allows users to send and receive money, invest in stocks and Bitcoin, apply for loans and file taxes, according to USA Today.
Cash App is not a bank, but it offers an interest-bearing savings account along with a debit card that customers can use for purchases and ATM withdrawals.
