Overview of the Settlement
Current and former Cash App users may be eligible to receive compensation from a $15 million class-action settlement after the popular online payment service faced allegations of inadequate data security measures. The settlement follows a lawsuit against Cash App Investing and its parent company, Block Inc., for allegedly failing to protect user information, which led to unauthorized charges on customer accounts after data breaches.
Background of the Lawsuit
Cash App and Block Inc., headquartered in Oakland, California, were sued over their handling of security breaches in recent years. The class-action lawsuit pointed to two key incidents. The first occurred in 2021, when a former employee allegedly downloaded reports containing U.S. user data without permission. The breach was disclosed in 2022. A second breach, disclosed in 2023, involved an unauthorized user gaining access to some accounts using phone numbers linked to them. Although Cash App and Block denied any wrongdoing, they agreed to a $15 million settlement to resolve the litigation and enhance their data security practices.
How to Claim Your Settlement Payment
If you are a current or former Cash App user impacted by these breaches, you may be eligible for a settlement payment. To claim, you’ll need to submit a request through the official settlement administrator’s website by November 18, with the final approval hearing scheduled for December 16.
Eligible individuals include those who experienced unauthorized access to their personal information or fraudulent withdrawals between August 23, 2018, and August 20, 2023. Affected users may have received a personalized notice by mail or email, but those who did not can still manually provide information online to submit a claim.
Potential Settlement Payouts
The amount each claimant receives will depend on the type of loss and the total number of claims submitted. The settlement covers three types of claims: out-of-pocket losses (up to $2,500 with documentation), compensation for lost time ($25 per hour, up to three hours), and relief for transaction losses. However, if the total claims exceed the available settlement funds, payments will be proportionally reduced.
