A new class action settlement will pay $15 million to plaintiffs affected by the misuse of private data and sensitive information, allegedly happened to Cash App customers.
As per the plaintiffs, who sued Cash App, between 2022 and 2023 the company obtained personal and account data without the consent of users, or experienced fraudulent withdrawals or transfers between August 23, 2018 and August 20, 2024, according to websites specialized in class action lawsuits.
The plaintiffs also allege that Cash App failed to properly protect users from two data breaches in 2022 and 2023: the 2022 data breach allegedly occurred when an employee logged into Cash App’s investment accounts, while the 2023 data breach allegedly involved unauthorized access by a third party using recycled phone numbers.
Cash App Class Action Settlement — 15M Available for Those Affected
Although the Cash App company did not accept that it had committed any irregularities or illegalities, it agreed to pay $15 million to the plaintiffs, to settle the claims of data breaches.
The terms of the agreement state that class group members can receive up to $2,500 each for documented losses related to their data breaches, including credit costs, bank fees, travel expenses and up to three hours of lost time compensated at a rate of $25 per hour.
On the other hand, members of the class group who experienced fraudulent transactions as a result of the data breaches can also claim and receive additional compensation, providing the evidential documentation of such alleged facts.
The deadline for exclusion and objection is November 1, 2024, while the final approval of the agreement is dated for December 16, 2024.
How to Receive Up to $2,500 From This Class Action Lawsuit Against Cash App
Those current and former Cash App customers whose account data and personal information were obtained by third parties without consent, or who experienced fraudulent withdrawals or transfers between August 23, 2018 and August 20, 2024, may include themselves as plaintiffs.
The maximum potential payment is $2,500, and they have to submit the following documents: Receipts, invoices, receipts, account statements, credit reports, financial documents, police reports and other documentation of losses related to data breaches.
“To be eligible to receive a Claimant Award for Settlement Benefits, including payment for Out-of-Pocket Losses, Lost Time or Transaction Losses from this Settlement, you must submit a timely and valid Claim Form. The Claim Form must be submitted no later than November 18, 2024,” the official settlement’s website explains.
“Unless you opt out of the Settlement, you are automatically part of the Settlement. If you do nothing, you will not get a payment from this Settlement and you will give up the right to sue, continue to sue, or be part of another lawsuit against the Defendants related to the legal claims resolved by this Settlement,” the site adds.
What Is Cash App?
Cash App is a popular mobile application that works as a kind of digital wallet. It allows you to send and receive money quickly and easily, either to friends, family or to make payments in stores and services that accept this method.
It’s like having a bank in your pocket, but with a friendlier interface and many additional functionalities.
It works to send and receive money to other Cash App users, using only the phone number, with the method known as $cashtag.
Thousands of establishments in the United States accept Cash App payments that are made by scanning a QR code, or using the virtual debit cards feature. It is particularly popular because groups of several people can split a bill when they go out to eat, or make a group gift.