CashApp Users may be entitled to a portion of multi-million dollar compensation from the company.
The payment platform and its parent block agreed, beginning of the year to pay $15 million to settle a lawsuit alleging the company failed to protect its customers from data breaches.
Now these users – past and present – can submit a claim for a portion of this settlement, for up to $2,500says a website set up by the plaintiffs.
As PYMNTS reported, Cash App and Block sued in 2022 for “negligent” behavior in connection with a data leak at the end of 2021, which apparently the personal data of 8.2 million current and former users was compromised.
According to Block, the breach occurred because a former employee still had access to reports that contained users’ full names and brokerage account numbers.
“While this employee had regular access to these reports as part of his previous duties, in this case these reports were Access without permission after their employment was terminated,” the company said in a filing with the SEC.
The lawsuit had claimed that the employee was able to access this information due to inadequate security Protection, and argued that the plaintiffs were at increased risk of identity theft and fraud.
The lawsuit also cited the fact that Cash App waited several months to notify, causing additional damage to the customers which “they could have avoided if the disclosure had been made in a timely manner.”
Meanwhile, Block recently released its quarterly results. And with you It is plans to use the opportunity to use Cash App for Senior Partner for Financial Services The first choice for families with incomes up to $150,000 by encouraging the introduction of salary payments and increasing inflows.
The company calls this its “Bank the Base” strategy and recently began testing incentives to drive new paycheck deposit activities as a growth strategy.
“It all depends on the incentives,” says Block founder Jack Dorsey said.
“It’s about making Cash App the most important financial instrument for our base,” said Block CFO Amrita Ahuja added. “Which ultimately leads to greater engagement and stronger inflows.”
The company’s Cash App Card had 24 million monthly active users in June. 13% year-on-year increase, while inflows per active user saw healthy growth, increasing 10% year-on-year during the quarter.
