Cash App Class Action Settlement 2025: How to Claim Your $2500

Recently, there has been an opportunity for Cash App users to receive compensation from a $15 million settlement agreement. The settlement aims to compensate for losses caused by lapses in security measures. Plaintiffs had accused Block, Inc. and Cash App Investing of negligence in protecting user data, resulting in unauthorized account access and transactions. While the companies denied any culpability, they still decided to settle to avoid lengthy litigation and resolve uncertainties.

The suit mentions several significant security incidents:

2022 data breach: A former employee of Cash App Investing gained access to sensitive customer data without permission. 2023 incident: Unauthorized users accessed accounts through recycled phone numbers, raising questions about Cash App’s security protocols and responses.

Plaintiffs cited these negligence as the cause of financial losses and inconvenience and alleged that customer complaints were not addressed appropriately.

Eligibility Criteria

If you are a current or former user of Cash App or Cash App Investing and have experienced the following, you may be eligible for this settlement:

• Unauthorized access to your personal information or Cash App account.
• Experienced fraudulent withdrawals, transfers, or any incorrect transactions.
• Experienced these issues between August 23, 2018, and August 20, 2024.

Types of Compensation

The $15 million compensation will be distributed across different categories:

• Cash Compensation: Part of this fund will be paid directly to affected users who submit valid claims.
• Initial Categories:
  • Out-of-Pocket Losses: Amounts up to $2,500, such as credit monitoring, identity theft insurance, and other related fees (such as overdraft fees not refunded by the bank).
  • Lost time compensation: If a user has spent three hours fixing security issues, they will receive compensation at $25 per hour.
  • Transaction losses: Financial losses caused by unauthorized activities will be compensated, provided they are not already covered by Cash App or other financial institutions.

Payout process

If there are more claimants and the total compensation amount is exhausted, the payment will be reduced proportionately. Excess funds may be distributed to another claimant or donated to a charity.

Claim process

Eligible customers were required to submit a claim form by November 18, 2024. Claims could be made online or by mail, including documentation related to financial losses and settlement efforts such as receipts, police reports, or correspondence.

What happens next?

The court has extended some deadlines and set a final approval hearing for January 13, 2025. After approval, payment dates will be set, and payments are estimated to be due in 9 to 12 months. Claimants will be required to update their contact details so they can receive compensation.

If you need assistance, you can contact the Cash App Security Reconciliation Administrator at 1-866-615-9740.

Conclusion

This reconciliation by Cash App is an important step that provides financial compensation to users affected by the alleged security breaches. This incident also underscores the need for robust security and response service in digital financial platforms. This reconciliation provides users with an opportunity to protect their rights and helps deal with these types of security issues.

For more information, you can view the reconciliation FAQs or contact the reconciliation administrator directly.

FAQs