Thousands of Cash App customers can claim more than $2,500 each as part of a $15 million class action settlement that arose over data and security breaches at the mobile payments service.
This class action settlement covers those whose accounts were accessed without the authorization of their account holders or who suffered fraudulent withdrawals or transfers. They can file claims and join as plaintiffs in the class action, as long as they had or have an account between August 28, 2018 and August 20, 2024, according to the settlement website.
The Cash App Incidents and Subsequent Class Action Lawsuit
The lawsuit refers to an incident that occurred in 2021 at Cash App, but which it did not disclose until 2022. This incident involves a former employee who downloaded reports from certain America users without permission to use them fraudulently.
Also mentioned was another breach, revealed in 2023, in which an unauthorized user accessed some Cash App accounts using phone numbers linked to them.
The plaintiffs and their attorneys also alleged that Cash App and Block, the app’s umbrella company, did not offer strong enough controls to block unauthorized users and that the company then mishandled customer complaints alleging security breaches and fraudulent transactions in their accounts.
Cash App and Block also agreed to take steps to strengthen data security as part of the deal, despite denying any wrongdoing. Still, they decided to agree to pay $15 million to the plaintiffs, plus attorneys’ fees and administrative costs.
How to File a Claim Against Cash App in the Class Action Lawsuit
Customers can submit a claim at this site. They will need to enter a notice ID and a confirmation code from a notice sent by mail or email, or they can file a claim if they have not received such a notice. You can file a claim even if you no longer have a Cash App account. All that is required is to complete the form on the aforementioned website.
If you have multiple accounts, you must include your $Cashtag ID (which is the unique username created for each account) and information about your claims on a single claim form.
What Is the Deadline to Request a Payment From Cash App?
Customers have until November 18, 2024 to file a claim under the settlement.
How much money will you receive as a plaintiff?
It is not yet clear how much each individual will receive because it will depend on how many people file claims. However, those affected by data and security breaches can request up to $2,500 for reimbursement of personal losses.
You must have documentation such as invoices, receipts, or vouchers that support your claim. Personal expenses may include:
- Costs for credit monitoring or identity theft insurance, requesting a credit report, or freezing credit.
- Costs incurred to cancel a payment card or obtain a replacement card.
- Costs related to closing a bank account and opening a new one.
- Overdraft fees that have not been refunded.
- Charges or fees for late or missed payments that have not been refunded.
Can I opt out of the Cash App class action settlement?
Yes, you can opt out of the settlement before November 1, 2024. This option will allow you to sue individually or be part of another lawsuit related to the same issues against the same company in the future.
You can also object to the settlement agreement by writing to the court before November 1, 2024. You can choose to do nothing, but if you do nothing, you will not receive any payment, and you will give up the right to file another lawsuit with claims covered by this agreement.