Cash App users can now get compensation from a $15 million settlement related to claims of inadequate security. The plaintiffs alleged that Block, Inc. and Cash App Investing were negligent in safeguarding user data, leading to unauthorized access to accounts and transactions. Although Block and Cash App Investing did not acknowledge any wrongdoing, they agreed to the settlement to avoid the expenses and time associated with continuous legal battles.
Between August 23, 2018, and August 20, 2024, customers who have experienced unauthorized account access or fraudulent transactions, or those who are not satisfied with how their complaints were addressed, may be entitled to receive up to $2,500. This compensation can include reimbursement for financial losses and additional compensation for time spent and damages related to the transactions. Claims need to be submitted by November 18, 2024.
Background of the Cash App Class Action Lawsuit
The settlement is a result of a class-action lawsuit initiated by Michelle Salinas, Raymel Washington, and Amanda Gordon. They brought forward the suit following revelations that a previous employee of Cash App Investing inappropriately obtained user data in 2022. Additionally, in 2023, there were further breaches that included unauthorized entry into accounts through reused phone numbers.
The individuals bringing the lawsuit alleged that Block, previously known as Square, and Cash App Investing failed to uphold proper security measures, resulting in unauthorized transactions and inadequate management of customer complaints. Although they denied any wrongdoing, Block and Cash App Investing opted to resolve the matter, stating the substantial expenses and unpredictability associated with a prolonged legal battle.
Key Allegations in the Lawsuit
The lawsuit brought attention to several critical security breaches:
- 2022 Incident: A former Cash App Investing employee unlawfully accessed sensitive user data.
- 2023 Breach: Unauthorized individuals gained access to accounts using recycled phone numbers.
The plaintiffs contended that Cash App’s lack of sufficient security protocols directly led to these breaches, causing financial losses and frustration for numerous customers. They also faulted the company for its ineffective response to complaints about fraudulent transactions.
Purpose of the Settlement
The primary objective of the settlement is to offer monetary compensation to impacted users, while also incentivizing Cash App to enhance its security measures. By reaching a settlement, both the plaintiffs and the defendants can sidestep a protracted and expensive legal battle, leading to cost savings for both parties and eliminating the uncertainty of a trial.
Who Qualifies for Compensation?
You may be eligible to file a claim if you meet the following conditions:
- You are a current or former Cash App or Cash App Investing customer.
- Your personal information, Cash App account, or Investing account was accessed without your permission.
- You experienced unauthorized withdrawals, transfers, or other issues that were not adequately resolved between August 23, 2018, and August 20, 2024.
Understanding the Settlement Benefits
The settlement offers multiple types of compensation to class members, ensuring coverage for various damages caused by the alleged security failures.
Monetary Compensation
The $15 million settlement fund will cover:
- Attorneys’ fees and legal expenses.
- Service payments to the class representatives.
- The expenses associated with overseeing the settlement.
- Customers who meet the criteria and submit valid claims will receive direct compensation.
Categories of Compensation
- Out-of-Pocket Losses: In the event of a security breach, customers are eligible to receive reimbursement for expenses of up to $2,500. These expenses may include identity theft insurance, credit monitoring, payment card replacements, and potentially unreimbursed fees like overdraft charges.
- Lost Time: Claimants are eligible to receive reimbursement for a maximum of three hours of time lost while addressing the repercussions of security incidents. The compensation rate is $25 per hour, allowing for a potential reimbursement of up to $75.
- Transaction Losses: If you experience any financial losses due to unauthorized account activity, you may be eligible for compensation. This includes losses that are not already covered by Cash App or other financial institutions.
Pro-Rata Distribution
In the event that the total number of valid claims surpasses the available settlement funds, the payout for each claimant will be adjusted proportionally. Conversely, if there are remaining funds after processing all claims, the surplus may be distributed among claimants or donated to a charitable organization, depending on the final amount.
Filing a Claim for the Cash App Settlement
In order to take advantage of the settlement, customers who meet the criteria must file a claim by November 18, 2024. The process for submitting a claim is simple and can be done online. Alternatively, paper forms are an option for individuals who prefer to mail in their claims. When submitting a claim, it’s important for claimants to include supporting documentation, such as receipts, police reports, or emails, to validate their losses.
Steps to File a Claim:
- Determine Eligibility: Please ensure to review the settlement details to confirm your eligibility.
- Collect Documentation: Make sure to collect all the required evidence, such as bank statements, receipts, and any pertinent communication regarding the breach or any losses.
- Submit the Claim Form: Be sure to fill out the claim form with accurate information and submit it either online or by mail before the deadline.
Additional Information and Support
When you require further information or help with the claim process, feel free to reach out to the Cash App Security Settlement Administrator using the provided phone number or address. Additionally, it’s crucial to keep your contact information up to date in case it changes after you’ve submitted your claim, as this will ensure that you receive any entitled payments.
Conclusion
“This $15 million agreement provides a means for impacted Cash App users to get reimbursed and find resolution after the purported security deficiencies. It also underscores the significance of robust security protocols and attentive customer support in the constantly changing digital financial industry.”
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