Cash App customers may now seek compensation from a $15 million class-action settlement addressing allegations of inadequate security measures. Plaintiffs accused Block, Inc. (formerly Square) and Cash App Investing of negligence, claiming the companies failed to safeguard user data, resulting in unauthorized account access and financial losses. While the companies denied wrongdoing, they agreed to the settlement to avoid the uncertainties and costs of litigation.
Eligibility and Compensation
This Article Includes
The settlement covers individuals who experienced unauthorized account access, fraudulent transactions, or unsatisfactory resolution of complaints between August 23, 2018, and August 20, 2024. Eligible customers can claim:
- Up to $2,500 for out-of-pocket expenses, such as identity theft prevention, replacement cards, and unreimbursed overdraft fees.
- Compensation for up to three hours of lost time dealing with these issues, valued at $25 per hour.
- Reimbursement for direct financial losses due to unauthorized transactions.
Claims must be submitted by November 18, 2024.
Details of the Class Action
The Allegations
The lawsuit stems from incidents in 2022 and 2023, including:
- A former employee of Cash App Investing accessing customer data without authorization.
- Unauthorized account activity linked to recycled phone numbers.
Plaintiffs alleged that these breaches reflected a failure to implement adequate security protocols and to address complaints effectively, causing financial and emotional distress for affected users.
Settlement Objectives
The settlement seeks to:
- Provide financial relief to impacted customers.
- Address security vulnerabilities to prevent future incidents.
- Resolve the matter efficiently, sparing all parties the time and expense of prolonged litigation.
How to File a Claim
To participate, follow these steps:
- Confirm Eligibility: Ensure you meet the criteria based on account activity between August 2018 and August 2024.
- Gather Documentation: Collect evidence, such as financial statements or police reports, to support your claim.
- Submit a Claim: Complete the form online or via mail before the November 18, 2024, deadline. Include all required documentation to avoid delays.
For assistance, contact the Cash App Security Settlement Administrator via the settlement website or designated hotline.
Settlement Fund Distribution
The $15 million settlement fund covers:
- Legal fees and administrative costs.
- Compensation to class members.
- Service awards for lead plaintiffs.
If valid claims exceed available funds, payouts will be adjusted proportionally. Any remaining balance may be redistributed among claimants or donated to an appropriate nonprofit.
Implications for Digital Finance
This settlement underscores the critical need for robust security and responsive customer service in the financial technology sector. As digital platforms become integral to daily transactions, companies must prioritize safeguarding user data to maintain trust and accountability.
Affected Cash App customers are encouraged to act promptly to secure compensation and contribute to the broader push for improved cybersecurity practices in the industry.
