A critical window is now closed for Cash App users to claim their compensation from a class-action settlement arising from large security breaches affecting the mobile payment service as explained here, $15 million class-action suit means Cash App customers could be in line for $2,500 claims. With the deadline of claims already passed at November 18, 2024, it is important for those who have filed their forms for the settlement to stay up to date with information regarding it.
Background of the settlement
The proposed $15 million class-action settlement against Cash App and its parent company, Block, formerly known as Square, alleges negligence in handling user data. The basis for this lawsuit is over two high-profile incidents, namely:
- In 2022, a former employee of Cash App Investing accessed sensitive data of customers without a valid business need.
- During 2023, some unauthorized users logged into Cash App accounts using recycled phone numbers associated with those accounts.
These incidents ignited concerns regarding the effectiveness of Cash App’s security measures and its manner of response when users complained about unauthorized transactions. However, even as Cash App and Block deny wrongdoing, they have agreed to this settlement to avoid uncertainties and the surmounting costs of prolonged litigation.
Who Is eligible for compensation?
To be eligible for compensation under the settlement, users have to fulfill criteria set within the context. You are eligible if:
- You were a current or former customer of Cash App or Cash App Investing between August 23, 2018, and August 20, 2024.
- Your personal information or account was accessed without your authorization.
- You experienced unauthorized withdrawals or transfers from your account.
- If you had difficulties reconciling errors in your Cash App account or any other financial account associated with it throughout the time of these breaches, then you may also be entitled to benefits.
The deadline to submit a claim was November 18, 2024, at 10:59:59 p.m. PT and it might be worthy to note that deadline for submitting claims is already passed and submissions are closed.
What happens after filing?
After filing, claims would be reviewed for eligibility. There will be a final approval hearing on December 16, 2024, when the Court considers whether the settlement is fair among other things and determines the amount of attorney’s fees and all related expenses to be paid. If approved, the distribution of the payments shall occur shortly thereafter.
Where claims are in excess of the settlement pool available, payments may be granted pro-rata, each claimant receiving a fraction of their request in proportion to total claims filed.
For those who have missed the deadline of November 18, 2024, for filing a claim, they will forfeit the opportunity to receive any form of compensation from the proposed settlement, amounting to $15 million. This settlement is for users who have experienced unauthorized account access between August 23, 2018, and August 20, 2024, or those suffering from fraudulent transactions in the same period.
Penalty for missed deadline
- Loss of reimbursement: The most direct consequence of missing this deadline is that you won’t be able to claim up to $2,500 in out-of-pocket losses from unauthorized transactions or account access. It also includes potential reimbursement for things such as credit monitoring services or identity theft insurance.
- No recourse for claims: After this date, no other opportunities will be afforded to anyone to file claims or appeal for compensation in relation to this settlement. The time frames are strict for the submission of claims; hence, late submissions will not be considered.
- Consequence on future settlements: Failure to act by this deadline could also cost you your information and participation in any future class action settlements related to Cash App or other involved services. Acting promptly about current settlements might provide some valuable information to help you through future complications.
What can you do now?
If you have not yet filed a claim but believe you may be eligible, it might be already too late to file this claim as the deadline for claim submissions is passed but you might need to keep informed and periodically check the status about the settlement process. There will be a Final Approval Hearing on December 16, 2024, where information shall be provided about the disbursements of the payments.
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