Recently, the District Court of the Northern District of California handling the Cash app Security class action lawsuit has issued an order to extend the deadline for the final hearing from December 2024 to 13 January 2025.
Cash App Settlement Payout Date
The settlement involves Cash App Investing and Block Inc. where the lawsuit claims the defendant neglected and failed to protect customers’ data from unauthorized access. The plaintiffs claim when a former Cash App worker accessed the customer’s account data, and in 2023 third party accessed the Cash App linked account with a recycled phone.
The defendants denied any wrongdoing, however, they agreed to a $15 million settlement to resolve the case. The court granted the preliminary order for the $15 million fund, and the class members were asked to submit the claim form before 18 Nov 2024.
On 7 Nov 2024, the Court directed they will conduct the final approval hearing on 13 January 2025 from the previous 16 Dec 2024, which means the payout will be processed only after January 2025 if the court grants the final approval. The class members with valid claims can expect the cash payment within 30 or 90 days of the approval.
So, the class members can expect the cash payment in Feb or March 2025 based on the selected payment method in the claim form.
What makes you eligible for the Cash App Settlement Payout?
The US residents who meet the following eligibility requirement of the class member would receive the Cash App Security settlement payout:
- You are a former or current customer of Cash App or Cash App Investing or any of their affiliates,
- Your personal information is obtained/ acquired from a Cash App account or your linked account has been accessed by an unauthorized party without your consent, or
- Through some unauthorized event, you have faced fraudulent withdrawals or transfers of money from your Cash app account or linked account between the class period of 23 August 2018 to the notice date of 20 August 2024.
- People who have not been excluded from the settlement submit the opt-out form before 18 Nov 2024.
Cash App Settlement Payout Per Person
Under the Cash App security settlement, the eligible class members with valid claims will receive the settlement benefit from the total $15 million fund based on the losses they incurred they qualify for, so the payout for each person may differ depending on the awards they have claimed for.
So, based on the settlement agreement, the valid claimants will receive the following Cash App security settlement benefits:
- Out-of-pocket losses Reimbursement: The class members who have claimed the out-of-pocket loss with the evidence will receive a cash payment of around $2500. The out-of-pocket loss consists of the money you spent on the resolution of the unauthorized access or dealing with the fraudulent activity.
- Transaction loss: If you have lost money from your account due to an unauthorized transaction and claimed the settlement benefit in the claim form with valid proof, you may receive the documented lost amount.
- Lost Time: The claimants who have claimed the lost time benefit for spending time dealing with the unauthorized access will receive the settlement benefit of up to $25 for each hour spent up to three hours.
Before the administrator processes the compensation payments for class members, the administrator will use the fund to cover the following expenses first:
- Attorney’s fees and cost
- Settlement administrator expenses
- Service Awards for class representative
- Tax-related settlement expenses.
After the administrator deducts the above Court-approved expenses and costs, the net settlement fund will be utilized to distribute the compensation amount to the class members with valid claims.
The class members should be aware that the estimated settlement fund cash payment for the class members may get reduced if the net settlement fund after covering the other expenses is not enough for the class members’ compensation.
How will you receive the Cash App Settlement Payout?
The class members will receive the cash payment based on the payment method they have selected in the claim form. According to the settlement agreement, the class members were allowed to choose between the following payment methods:
- Venmo
- Virtual Prepaid card
- Zelle
- Physical Check.
People who selected the electronic payment method will receive the approved compensation early like in weeks, however, people who opted for a physical check or didn’t select the method will by default receive the payment via physical check will receive payment in 60- 90 days based on their mailing service.
What happens to uncashed physical checks or electronic payments?
The valid claimants should cash out their Cash App security settlement compensation within 90 days from the date of issuance from the settlement administrator. If you fail to do so, the administrator will take the following actions:
- The administrator will try to contact the class member via the contact number or email mentioned in the claim to discuss why they haven’t cashed out the payout or how to obtain a reissue check or electronic payment.
- If the attempt to contact you is unfruitful, the administrator will try to locate your address to address the issue,
- The administrator will mail the reissued check or electronic payment with a postcard with the information on how to cash out the settlement payout via check or electronic payment method.
The class members should know the reissued check or electronic payment will remain valid till 60 days from the date of issuance, however, even after the issuance of the check or electronic payment, if the class member does not cashout the payment, the payment will be automatically canceled for that class member.
The Cash App Security Settlement payout will be processed in the first three months of 2025, if the Court approves the settlement on 13 Jan 2025, so guys do report if your address/ bank account/ electronic payment details are changed to the settlement administrator.
