MOBILE, Alabama (WALA) – Current and former Cash App users could be entitled to a significant portion of a proposed class action settlement involving the popular online payment service.
Earlier this year, Cash App Investing and its parent company Block Inc. agreed to pay $15 million to settle a lawsuit alleging that it did not exercise “sufficient care” in protecting user information before and after recent data breaches. The class action lawsuit cited two incidents in which access to some account data was compromised, leading to numerous unauthorized withdrawals from Cash App customers.
Now, those consumers can apply for a settlement payment that could include reimbursement of up to $2,500 in cash losses before final approval. Here’s what you need to know.
Why was Cash App sued?
Cash App and Block, based in Oakland, California, have been sued over their handling of security breaches in recent years and allegations that they did not take adequate security measures to protect customers.
Cash App and Block have denied any wrongdoing. However, to settle the dispute, they have agreed to pay $15 million. Aside from legal and administrative fees, this money will go to affected customers who have legitimate claims.
Cash App and Block also agreed to take steps to improve data security as part of the settlement. The company did not provide further comment to The Associated Press on Friday.
How can I get severance pay?
To receive a payment, you must submit a claim on the official settlement administrator’s website. The current deadline to submit a claim is November 18 – the final hearing to approve the settlement is scheduled for December 16.
Current or former Cash App customers who were affected by unauthorized access to their personal information or fraudulent withdrawals between August 23, 2018 and August 20 of this year are eligible. You may have received a personal notification in the mail or email informing you of your eligibility for the settlement. If not, you also have the option of manually providing information about your situation online.
How much money can I get?
The amount of compensation varies from person to person and depends on the losses eligible for compensation – and also on how many people ultimately make a claim.
Class action participants may be able to recover compensation for three types of claims: cash payouts, lost time, and transaction losses. With proper documentation, you may be able to recover up to $2,500 in cash payouts, $25 per hour for lost time (up to a maximum of three hours), and additional compensation for transaction losses.
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