Cash App users now have the chance to receive compensation from a $15 million settlement following claims of inadequate security. Plaintiffs alleged that Block (formerly Square) and Cash App Investing failed to properly safeguard user data, leading to unauthorized access and fraudulent transactions. While the companies denied any liability, they agreed to the settlement to avoid the uncertainty and costs of litigation.
Cash App $15 Million Settlement 2024
Customers who experienced unauthorized access, fraudulent transactions, or unsatisfactory resolution of their complaints between August 23, 2018, and August 20, 2024, may be eligible for up to $2,500 in compensation for out-of-pocket expenses and additional reimbursement for lost time. The deadline for claim submission is November 18, 2024.
Cash App Class Action Lawsuit Background
The settlement stems from a class action lawsuit led by Michelle Salinas, Raymel Washington, and Amanda Gordon. The legal action followed reports that a former employee of Cash App Investing accessed user data in 2022. Further incidents in 2023 involved unauthorized access to accounts through recycled phone numbers.
Plaintiffs accused Cash App and Block of negligence, alleging they failed to implement necessary security measures and mishandled customer complaints. Although the companies denied the allegations, they agreed to settle in order to avoid prolonged litigation.
Key Allegations
Several key incidents formed the basis of the lawsuit:
- 2022 Data Breach: A former employee accessed sensitive customer data without permission.
- 2023 Unauthorized Access: Accounts were compromised due to the reuse of phone numbers.
The plaintiffs argued that Cash App’s security failures caused financial losses and significant inconvenience for many users.
Settlement Goals and Benefits
The settlement aims to compensate affected users and implement stronger security protocols to prevent future incidents. It also helps both parties avoid the uncertainties and expenses of a court trial.
Who Qualifies for Compensation?
You are part of the Settlement Class if:
- You are a current or former Cash App or Cash App Investing customer.
- Your personal information or account was accessed without authorization.
- You experienced unauthorized transactions or encountered errors in resolving account issues between August 23, 2018, and August 20, 2024.
Understanding Settlement Compensation
The settlement includes multiple forms of compensation, covering various damages caused by the alleged security breaches.
Monetary Compensation
A $15 million settlement fund has been established to cover:
- Legal fees and court costs.
- Payments to class representatives.
- Administration of the settlement.
- Direct compensation to claimants who file valid claims.
Categories of Compensation
- Out-of-Pocket Losses: Eligible individuals can claim up to $2,500 for expenses directly linked to the incidents. This includes costs such as credit monitoring, identity theft protection, credit freezes, and fees like overdraft charges that were not refunded.
- Lost Time: Claimants can be reimbursed for up to three hours of lost time dealing with these incidents, at a rate of $25 per hour.
- Transaction Losses: Users can also be compensated for documented financial losses caused by unauthorized transactions that were not covered by Cash App, insurance, or other financial institutions.
Pro-Rata Distribution
If the total claims exceed the settlement fund, compensation will be reduced proportionally. Conversely, if funds remain after all claims are satisfied, the excess may be distributed to claimants or donated to charity.
How to File a Claim
To receive compensation, eligible users must submit their claim by November 18, 2024. The claim form can be completed online, but paper submissions are also accepted. Claimants need to provide supporting documents, such as receipts or police reports, to validate their claims.
Steps to File
- Check Eligibility: Review the settlement details to ensure you qualify.
- Collect Documentation: Gather proof of your claims, such as financial statements or reports.
- Submit Claim: Complete the form and submit it with supporting documents before the deadline.
Additional Support and Information
Claimants can contact the Cash App Security Settlement Administrator for further help or more information about the settlement. It is crucial to keep your contact details updated to ensure timely payment.
Conclusion
This settlement marks an essential step in addressing security concerns at Cash App and provides financial compensation for affected users. It also emphasizes the need for enhanced security and responsive customer support in the digital finance sector.
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