A $15 million settlement has been reached in the class action lawsuit against Block Inc., the parent company of Cash App, following claims of negligence related to two significant data breaches.
The settlement offers affected users compensation of up to $2,500 for damages and out-of-pocket losses.
The lawsuit alleges that Block Inc. and Cash App Investing were negligent in protecting user data, leading to breaches in 2022 and 2023.
The breaches involved unauthorized access to users’ personal information, including account data accessed by a former employee and unauthorized account access via recycled phone numbers.
In a 2022 SEC filing, Block disclosed that approximately 8.2 million users were affected. Despite denying liability, Block and Cash App have agreed to the settlement.
Users who had accounts accessed without permission or experienced unauthorized transactions between August 23, 2018, and August 20, 2024, are eligible for compensation.
Eligible users can claim up to $2,500 for out-of-pocket losses by providing third-party documentation proving connection to a data security incident, unauthorized account event, or error resolution deficiency.
Claims for lost time are capped at $75, with a maximum of $25 per hour for up to three hours. Users can also seek reimbursement for documented transaction losses due to unauthorized account events by submitting a police report, notification of the unauthorized event, or evidence of unauthorized access.
Claims must be submitted by November 18, 2024, either online or by mail. Users wishing to opt out of the settlement must send a written notice by November 1, 2024.
However, opting out does not exempt individuals from the need to file a claim to receive compensation.
The final approval hearing for the settlement is scheduled for December 16, 2024. Settlement payments will be distributed following this hearing, though the timeline may be adjusted.
