Cash App Class Action Settlement 2025: How to Claim Your $2500

Here comes the opportunity for Cash App users to get compensation under a recent $15 million settlement. The settlement is to compensate for losses that were incurred due to lapses in security measures. The plaintiffs alleged that Block, Inc. and Cash App Investing were negligent in protecting user data, which led to unauthorized account access and transactions. Although the companies did not admit any fault, they decided to settle to avoid a lengthy legal process and uncertainties.

Key Security Incidents

The lawsuit mentions some of the key security incidents:

2022 Data Breach: A former employee of Cash App Investing accessed sensitive customer data without permission.
2023 Incident: Unauthorized access to accounts occurred through reused phone numbers, raising questions about Cash App’s security protocols and response.

The plaintiffs cited these negligence as the cause of financial losses and inconvenience and alleged that customer complaints were not handled properly.

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Eligibility Criteria

If you are a current or former user of Cash App or Cash App Investing and have experienced the following issues, you may be eligible for this settlement:

Unauthorized access to your personal information or Cash App account.
Fraudulent withdrawals, transfers, or erroneous transactions.
These issues occurred between August 23, 2018, and August 20, 2024.

Types of Compensation

This $15 million compensation will be distributed across various categories:

Cash Compensation: Direct payments will be made to affected users who make a valid claim.
Initial Categories:
- Reimbursement for out-of-pocket expenses: Up to $2,500 for costs such as credit monitoring, identity theft insurance, and other related fees (such as overdraft fees not returned by the bank).
- Loss of Time: If a user has spent three hours fixing security issues, they will receive compensation at $25 per hour.
- Transaction losses: Financial losses caused by unauthorized activities will be compensated, provided it has not already been covered by Cash App or other financial institutions.

Payment process

If the number of users making a claim is high and the total compensation amount is exhausted, payments will be reduced proportionately. The remaining funds may be distributed among other claimants or donated to a charity.

Claim process

Eligible customers had to submit a claim form by November 18, 2024. Claims could be made online or by mail, including documents related to the financial loss and settlement, such as receipts, police reports, or correspondence.

What happens next?

The court has extended some deadlines and set January 13, 2025, for a final approval hearing. After approval, payment dates will be set, and payments are expected in approximately 9 to 12 months. Claimants will need to update their contact information so they can receive compensation.

If you need assistance, you can contact the Cash App Security Reconciliation Administrator at 1-866-615-9740.

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Conclusion

This settlement by Cash App is an important step, providing financial compensation to users affected by the alleged security breaches. This incident also shows how much stronger security and response service is needed in digital financial platforms. This settlement provides users with an opportunity to protect their rights and helps combat these types of security problems.

FAQs

Q. What is the Cash App $15 million settlement?

A. The settlement compensates users affected by security breaches, such as unauthorized account access and fraudulent transactions.

Q. Who is eligible for the settlement?

A. Current or former Cash App users who experienced unauthorized access, fraudulent withdrawals, or incorrect transactions from August 23, 2018, to August 20, 2024.