Recently, the District Court for the Northern District of California dealing with a class action lawsuit against Cash app Security issued an order extending the deadline for the final hearing from December 2024 to January 13, 2025.
Date of payment of application settlement in cash
The settlement includes Cash App Investing and Block Inc. where the lawsuit alleges that the defendant neglected and failed to protect client data from unauthorized access. Prosecutors allege when a former Cash App employee accessed user account information, and in 2023, a third party accessed an account associated with the Cash App with a recycled phone.
The defendants denied any wrongdoing but agreed to a $15 million settlement to settle the case. The court granted a preliminary order for the $15 million fund, and class members were asked to file a claim form by November 18, 2024.
On November 7, 2024, the court ordered that it would hold a final approval hearing on January 13, 2025, up from the previous December 16, 2024, meaning the payment would not be processed until after January 2025 if the court grants final approval. Class members with valid claims can expect cash payouts within 30 or 90 days of approval.
Thus, class members can expect a cash payment in February or March 2025 based on the payment method selected in the claim form.
What makes you eligible for a Cash App Settlement Payout?
US residents who meet the following class member eligibility requirements will receive a Cash App Security settlement payment:
- You are a former or current user of Cash App or Cash App Investing or any of their affiliates,
- Your personal information has been obtained/acquired from your Cash App account or your linked account has been accessed by an unauthorized party without your consent, or
- Through some unauthorized event, you have experienced a fraudulent withdrawal or transfer of money from your Cash account or linked account between the class period of August 23, 2018 and the notification date of August 20, 2024.
- People who are not excluded from the settlement submit an opt-out form before November 18, 2024.
Payment of cash settlement per person per person
Under the Cash App Security Settlement, qualified class members with valid claims will receive a settlement benefit from an aggregate pool of $15 million based on the losses they have suffered for which they are eligible, so the payout for each individual may vary depending on the awards they have claimed for.
So, based on the settlement agreement, valid applicants will get the following security settlement benefits in the Cash App:
- Compensation for Out-of-Pocket Losses: Class members who have claimed an out-of-pocket loss with evidence will receive a cash payment of approximately $2,500. The out-of-pocket loss consists of money you spent to resolve unauthorized access or to resolve fraudulent activity.
- Transaction loss: If you have lost money from your account due to an unauthorized transaction and have requested a settlement on a claim form with valid proof, you may receive a documented amount of the lost amount.
- Lost Time: Claimants who have claimed a lost time benefit for spending time on settlementMr with unauthorized access will receive a fee of up to $25 for each hour spent up to three hours.
Before the Administrator processes compensation payments to Class Members, the Administrator will use the fund to first cover the following expenses:
- Attorney’s fees and costs
- Costs of the settlement manager
- Class Representative Service Awards
- Tax-related settlement costs.
After the administrator deducts the above court-approved expenses and costs, the net settlement fund will be used to distribute compensation amounts to class members with valid claims.
Class Members should be aware that the estimated settlement fund payout to Class Members may be reduced if the net settlement fund after covering other expenses is insufficient to compensate Class Members.
How will you receive your Cash App Settlement payment?
Class members will receive a cash payment based on the payment method they selected on the claim form. Under the settlement agreement, class members could choose between the following payment methods:
- Venmo
- Virtual subscription card
- cell
- Physical examination.
People who chose electronic payment method will receive their approved payment weeks early, however, people who opted for physical check or did not choose a method by default will receive payment via physical check will receive payment in 60-90 days based on their postal service .
What happens to uncashed physical checks or electronic payments?
Eligible applicants should pay their Cash App Security Settlement Compensation within 90 days from the date of issuance by the Settlement Administrator. If you don’t, the administrator will take the following actions:
- The administrator will attempt to contact the class member via the contact number or email provided in the request to discuss why they did not cash the payment or how to obtain a reissue check or electronic payment.
- If the attempt to contact you is unsuccessful, the administrator will try to locate your address in order to solve the problem,
- The Administrator will mail the reissued check or electronic payment with a letterhead containing information on how to cash the check or electronic payment settlement payment.
Class members should be aware that a reissued check or electronic payment will remain valid for up to 60 days from the date of issue, however, even after the check or electronic payment is issued, if a class member does not pick up the payment, the payment will automatically be voided for that class member.
The Cash App Security Settlement payment will be processed in the first three months of 2025, if the court approves the settlement on January 13, 2025, so please notify the Settlement Administrator if your address/bank account/electronic payment details change.
