Over the past few years, digital payment platforms like Cash App have become integral to how millions of people manage their finances. As with any widely-used financial technology, users expect personal and financial data to be kept secure. However, a recent class action lawsuit involving Cash App has raised concerns about data privacy and security, resulting in a substantial settlement offer to affected users. If you’re one of many who use or have used Cash App, understanding your eligibility and possible payout is essential.
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TLDR: What You Need to Know
The Cash App class action settlement stems from a 2021 data breach that allegedly exposed personal user information. Block Inc., the company behind Cash App, has agreed to a multimillion-dollar settlement without admitting any wrongdoing. If you were a user affected by the breach, you may be eligible for a financial payout or identity protection services. Eligible users must submit a claim form before the deadline to receive compensation.
Background of the Cash App Class Action Lawsuit
In December 2021, Block Inc. (formerly Square Inc.) discovered that a former employee had accessed confidential user information without authorization. This access occurred several months prior and included full names, brokerage account numbers, and in some cases, stock trading information.
Soon after the breach was disclosed, affected users filed a class action lawsuit alleging that Block Inc. failed to adequately protect their sensitive data, delayed notifying them, and thereby increased the risk of identity theft. Although the company has not admitted to any liability, it chose to resolve the matter via a class action settlement.
Who Is Eligible for the Settlement?
Eligibility is a critical component of any settlement. According to the terms of the Cash App settlement agreement, you may be eligible to file a claim if:
- You used Cash App’s investing services.
- Your personal data was accessed during the security incident in December 2021.
- You received notification from Block Inc. stating that your information was involved in the breach.
The company mailed or emailed notification letters to those believed to be affected, so if you were notified, you’re already on the list of potential claimants. However, if you’re unsure whether you’re eligible, the settlement website provides a lookup tool and contact information.
Types of Compensation Available
Claimants who are eligible and file a valid claim may receive one or more types of compensation:
- Monetary Compensation: Individuals may receive a cash payment as reimbursement for time or expenses directly tied to the breach, such as identity theft monitoring, professional consultation, or lost wages due to fraud resolution.
- Credit Monitoring Services: Alternatively or additionally, claimants can opt into 12 or 24 months of free identity protection and credit monitoring services.
- Out-of-Pocket Losses: Users who experienced identity theft or financial losses may be entitled to higher payouts, provided they submit documented evidence such as receipts, screenshots, or letters from financial institutions.
The actual payout amount depends on how many valid claims are submitted and the type of claim filed. While typical compensation in such cases ranges from $50 to a few hundred dollars, those with documented financial harm may receive more.
How to File a Claim
To ensure you receive the settlement amount owed to you, follow these steps:
- Visit the official settlement website.
- Locate and complete the online claim form. You will need details like your name, contact information, and any documentation supporting your claim.
- Select the form of compensation you prefer—either monetary reimbursement, credit monitoring, or both.
- Submit the form by the deadline, which is prominently posted on the site.
It’s worth noting that fraudulent claims may be rejected, and submitting false information may constitute a legal offense. Make sure all your information is accurate and supported by documentation wherever required.
Opting Out or Objecting
The settlement provides three main options for individuals:
- Submit a Claim: Receive the compensation you qualify for and give up your right to sue Block Inc. over the same issue.
- Opt Out: This allows you to retain the right to file your own separate lawsuit, but you will not receive compensation as part of this settlement.
- Object: If you disagree with the terms of the settlement, you can file an objection stating your reasons. However, this does not exclude you from the settlement unless you specifically opt out.
To opt out or object, you must do so in writing by the respective deadlines outlined on the official settlement page.
Important Deadlines
Timing is crucial. All claims, objections, or opt-out requests must be made by specific deadlines. While dates can vary depending on court approval, here are the commonly listed timeframes:
- Claim Filing Deadline: Typically 60–90 days from the notice date.
- Objection and Exclusion Deadline: Usually a week or two prior to the final fairness hearing.
- Final Approval Hearing: Set by the court, this hearing determines whether the settlement will receive final approval.
You should check the settlement website or consult a legal representative for any updates to the timeline.
What Happens After the Settlement is Finalized?
Once the court grants final approval to the settlement agreement:
- Valid claimants will be notified about the approval and the payout process will begin.
- Payouts may be distributed via mailed checks or electronic transfers, depending on the option selected during the claim process.
- If you opted for credit monitoring, instructions on how to activate the service will be sent to your email or physical address.
This process can take several weeks to a few months, so patience is essential. Monitor your email and mailbox regularly for updates from the settlement administrator.
Why Settlements Like This Matter
Large-scale data breaches not only compromise personal information but also erode trust in digital financial platforms. Settlements like these provide some measure of accountability, ensure affected users are compensated, and often push companies to tighten their data security measures.
For users, participating in such a class action reminds companies that data protection must remain a top priority. While no monetary amount can undo a personal data breach, receiving compensation can still provide some relief and closure.
Final Thoughts
The Cash App class action settlement is a strong reminder of the importance of digital privacy and corporate responsibility. If you believe you are eligible, don’t delay—take the necessary steps to protect your rights and secure your compensation. Carefully review your options, gather your documentation, and file your claim before the deadline.
As always, keep an eye on further announcements from either Cash App or the legal team managing the settlement. Awareness and timely action are your best defenses in any legal situation involving data security or financial information.