The Cash App is owned by Jack Dorsey’s Block Inc. and has recently been party to a class-action lawsuit. This case was concluded in the form of a Cash App Settlement worth $15 million wherein the company was deemed guilty of being negligent and failed to protect its users’ data. Therefore the affected customers of the Cash App could have claimed their respective share worth up to $2500 by November 18th, 2024.
The said data breach was found to be continued between August 23rd, 2018 and August 20th, 2024. Any Cash app user who was active during this duration with their personal data being compromised is potentially a claimant to the said Cash App Class-action lawsuit settlement. Unless any claimant opts out and doesn’t claim any share in this settlement to file a separate suit for their losses due to transactional fraud and data misappropriation.
Cash App Settlement
The Cash App and Block Inc. failed to implement adequate prevention mechanisms to stop any such data breaches. The misappropriation of user data and unauthorized access resulted in out-of-pocket losses and transaction losses. Not only that, the Cash App and Block Inc. also failed to adequately address the associated customer grievance on unauthorized access and transaction fraud. In the Cash App Lawsuit Settlement, the Cash App and Block Inc. denied any wrongdoing and negligence on their part to avoid any liability. Eventually, plaintiffs and defendants of this Cash App Class-action lawsuit reached a settlement and the court approved the settlement.
The Cash App Settlement Fund is worth $15 million which will be used to pay several payments incurred due to by the class representatives including attorneys’ fees and their associated costs, and service payment along with the administrative costs associated with the Settlement. Once these initial payments are cleared the remaining amount will be distributed among the eligible claimants who have successfully submitted their claim applications within the claim deadline. The eligible claimants will be awarded three reimbursements, i.e. out-of-pocket losses, lost time and transaction losses.
Cash App Settlement Claim worth $15 Million Key Details
| Title | Cash App Settlement Users Alert |
| Country | The United States of America |
| Lawsuit | Cash App Class Action Law Suit |
| Topic | Data Breach Settlement |
| Data breach Timeline | Between August 23rd, 2018 and August 20th, 2024 |
| Settlement worth | $15 Million |
| Settlement Share | Up to $2,500 for out-of-pocket losses |
| Deadline | November 18th, 2024 |
| Official Link | www.cashappsecuritysettlement.com |
What Cash App Users Need to Know
The Cash App, formerly known as Square, is a digital wallet app used for instant payments in the US. The Cash App data breach was a result of the company’s negligence and breach of trust towards its users and therefore has to pay reparations to the victims of the said data breach. The two major incidents cited in the lawsuit from the plaintiffs’ side were of unauthorized use and misappropriation. First incident was when a cash app employee who, despite not having the permission, accessed customer accounts data during 2022 and second incident was when another unauthorized user accessed customer accounts data by repurposing recycled phone numbers of the customers during 2023.
Cash App Settlement Amount
The Cash App Class Action Settlement was agreed to be distributed among the eligible claimants as follows:
- For the out-of-pocket losses – the claimants who submit qualified claims shall receive up to $2,500 as reimbursement for such losses in consequence of the Cash App data breach between August 23rd, 2018 and August 20th, 2024.
- For the lost time – the claimants who submit qualified claims can receive up to 3 hours of such losses to be reimbursed at $25 per hour rate.
- For the transaction losses – the claimants who submit qualified claims for such documented losses can receive adequate reimbursement for such losses in consequence of the Cash App data breach between August 23rd, 2018 and August 20th, 2024.
Cash App Settlement Claim Eligibility
The successful submission of the respective claim application by November 18th, 2024 will be necessary to consider any claimant for the share in Cash App Settlement. Thereafter, the eligibility of the claimants can be determined on the basis of documented evidence supporting the claim that are provided by the claimant with their claim application. These documented evidences include:
- third-party evidences in support of the claim that establishes the link between the Cash App data breach and out-of-pocket losses between August 23rd, 2018 and August 20th, 2024;
- copy of either the notification that was given to defendants or police report regarding the said data breach, or documented demonstration given to Settlement Administrator establishing link of transaction losses with the said data breach between August 23rd, 2018 and August 20th, 2024.
Payments under the Cash App Security Settlement Fund
The payments of Cash App Settlement share have been approved on January 13th, 2025 in the final approval hearing at the court and the Settlement Administrator has been appointed in Philadelphia, USA. The payments will be made as the settlement claims are verified and approved by the Settlement Administrator accordingly.
Who Can File Cash App Settlement Claim?
The claims for Cash App class-action lawsuit were only accepted till November 18th, 2024 and no further extensions were made in the deadline. Thus the share of the Settlement Fund shall only be distributed among the eligible claimants that successfully submitted their claim application within the said date. Any news regarding the claims to be filed beyond this deadline are rumors to say the least and can be an outright scam so beware of such disinformation and avoid making any payments in the name of penalty for late submission of the claim application. The Cash App Security Settlement Administrator can be contacted for any associated grievances.
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James Foster is a passionate writer at KnitCrate.com, specializing in finance, taxation, and public aid topics. With a knack for breaking down complex subjects, he delivers clear and insightful content for readers worldwide. When he’s not writing, James enjoys exploring economic trends and staying updated on global news.