Cash App users can now file a claim to receive a settlement from the class-action suit, allowing eligible users to receive up to $2,500 reimbursement from the $15 million.
The company agreed to settle the lawsuit under the alleged "failure to exercise reasonable care" to protect its users against data breaches.
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Cash App Settles Lawsuit With $15 Million Payment
Cash App and Block were sued after customers complained about the companies' responses during security breaches. The lawsuit used an incident in 2021 which was only disclosed in 2022 after a former employee accessed reports without permission.
The case also linked another breach that was reported in 2023 wherein an unauthorized user managed to access Cash App accounts through linked phone numbers.
Both companies denied any wrongdoing in handling the breaches but agreed to settle and pay $15 million to its affected customers. The companies also pledged to strengthen their data security as part of the settlement.
Cash App Instructs Eligible Users for Settlement Claim
According to Cash App, eligible customers can submit a claim on the official settlement administrator's website. Users have until November 18 to file their claim while the settlement's final approval hearing will be on December 16.
Eligible users are those who have been impacted by the breach which included their personal information or had experienced fraudulent withdrawals from August 23, 2018, to August 20, 2024.
Customers will also be notified of their eligibility through mail or email. Likewise, a manual option is also given to other customers to input their situation online.
There will be three types of classification for the claims: out-of-pocket losses, lost time, and transaction losses. Customers can receive up to $2,500 for out-of-pocket losses, $25 per hour for lost time with a limit of three hours, and additional relief for transaction losses.
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