(NEXSTAR) — Have you used Cash App at all since 2018? You may be eligible to receive part of a $15 million settlement Block Inc. (which owns Cash App) has agreed to after being accused of negligence following two data breaches.
According to the class action lawsuit, Block and Cash App Investing were “negligent and breached other obligations to users” in 2022 when a former employee accessed account data without permission. Block said in a 2022 filing with the U.S. Securities and Exchange Commission that it was notifying roughly 8.2 million current and former users about the incident.
The lawsuit said the company was negligent again the next year when “an unauthorized user” gained access to some Cash App accounts while using recycled phone numbers linked to those accounts. Plaintiffs have also accused Block and Cash App Investing of failing to implement steps to protect accounts after those incidents and “adequately resolve customer complaints regarding unauthorized or fraudulent transactions.”
Block and Cash App Investing have denied any liability or wrongdoing in the lawsuit but agreed to the $15 million settlement, according to a website established for the settlement.
Who qualifies for this settlement?
The settlement website says you may be eligible if:
- You have been or were a user of Cash App and/or Cash App Investing.
- Your account was accessed without your permission.
- There were unauthorized or fraudulent withdrawals or transfers with your account between August 23, 2018, and August 20, 2024.
How much could you receive?
If you meet the above criteria, you’ll be able to submit a claim for up to $2,500 “for out-of-pocket losses” experienced during the stated timeframe, the settlement website explains.
However, you’ll need to provide “third-party documentation” that connects it to “a data security incident, unauthorized account event, or deficiency in error resolution” with your Cash App or Cash App Investing account.”
You can also submit a claim to be reimbursed for lost time — capped at $25 an hour for three hours in this case, for a total of $75 — and for documented transaction losses due to “an unauthorized account event.” For the latter, you’ll need to submit at least one of three options: a copy of a notification of an unauthorized account event, a copy of a police report related to an unauthorized account event, or a document demonstrating your account was accessed without your permission.
You can find more details about these available settlement benefits here.
How long do I have to file a claim?
Claim forms, which can be completed online, have to be submitted by November 18, 2024. You can also print off a claim form and mail it in.
Regardless of how many Cash App accounts you have, you need only to submit one claim.
If you do not wish to be included in the settlement or wish to object to it, you’ll have to mail in a written notice by November 1.
If you do not opt out, you are considered part of the settlement. However, you can only receive a payment if you submit a claim.
When will the settlement be paid out?
As of August 6, there is no date yet listed on when settlement payments could be dispersed.
The settlement’s website lists December 16, 2024, as the final approval hearing. This date may, however, be rescheduled “without additional notice,” the site warns.
If the settlement agreement is approved during that court hearing, payments will likely go out soon after.
