A recently agreed settlement could mean extra money for users of the popular payment platform Cash App. If the District Court for the Northern District of California approves, a portion of the $15 million settlement would be used to compensate users affected by a series of data breaches over the past two years.
The first data breach was disclosed in 2022, when Cash App confirmed that a former employee had accessed account data without permission. A year later, Cash App disclosed another breach when an unauthorized user was able to access accounts through reused phone numbers. Cash App was also accused of failing to implement appropriate controls to prevent unauthorized access to accounts.
Cash App and its parent company Block Inc. have denied any wrongdoing in the matter but agreed to the settlement. If the settlement is approved, a portion of the $15 million will be used for attorneys’ fees and costs, a service fee for the class action representative and the costs of settlement administration.
Class members eligible for compensation include any Cash App or Cash App Investing user whose information was accessed without permission or whose account contained unauthorized or fraudulent withdrawals or transfers to or from your account between August 23, 2018 and August 20, 2024.
Plaintiffs can seek damages for cash losses, time losses, and transaction losses. Cash losses must be proven by third-party data and can include things like paying for credit monitoring or identity theft insurance, requesting a credit report, requesting a credit freeze, opening a new bank account, requesting a replacement credit card, or money lost through unpaid overdraft or late fees.
According to the agreement, expenses of up to $2,500 per class member will be covered.
Affected users may also file a claim for up to three hours of lost time, subject to a fee of $25 per hour. For more information on filing a transaction loss claim, visit the Settlement Agreement website.
Claims must be submitted by November 18, 2024.
