Cash App Class Action Lawsuit
A class action lawsuit has been filed against Cash App and its parent company, Block, Inc., alleging negligence in safeguarding user data, which purportedly led to unauthorized account access and fraudulent transactions.
Key Allegations
The lawsuit centers on claims that Cash App failed to implement adequate security measures, resulting in:
- Unauthorized Data Access: In 2022, a former employee allegedly accessed sensitive customer information without permission.
- Account Breaches: In 2023, unauthorized users reportedly accessed certain accounts using recycled phone numbers linked to those accounts.
These incidents are claimed to have led to unauthorized transactions and compromised personal information.
Who Filed the Lawsuit?
The class action was initiated by plaintiffs Michelle Salinas, Raymel Washington, and Amanda Gordon, who filed two complaints against Block and Cash App Investing.
Official Cash App Class Action Lawsuit Documents
For detailed information and official documents related to the lawsuit, please visit the Cash App Security Settlement website.
Cash App Class Action Settlement
The settlement reached in the Cash App class action lawsuit is valued at $175 million.
Cash App Class Action Eligibility
The settlement covers current and former Cash App users who, between August 23, 2018, and August 20, 2024:
- Had their personal information or accounts accessed without authorization.
- Experienced unauthorized or fraudulent withdrawals or transfers.
- Faced issues in resolving errors related to their Cash App accounts or linked financial accounts.
Cash App Settlement Terms
As part of the settlement, Cash App and Block, Inc. have agreed to:
- Compensate affected users for documented losses.
- Enhance security measures to prevent future breaches.
The companies deny any wrongdoing but have agreed to these terms to resolve the litigation.
Deadline for Filing a Claim Against Cash App
The deadline to submit a claim was November 18, 2024.
Cash App Class Action Payout
Claimants in this settlement may receive up to $2,500 for documented out-of-pocket losses and $25 per hour for lost time, up to three hours, totaling a maximum of $75. The actual payout depends on factors such as:
- Documentation: Proof of unauthorized transactions or losses.
- Extent of Impact: Severity and duration of the unauthorized access or fraudulent activity.
It has been reported that there are 8.2M claimants in the case–simply math indicates that most will receive a nominal amount of less than $5. It’s advisable to consult a tax professional regarding any potential tax implications of the settlement payout.
Cash App Class Action Payout Date
The final approval hearing for the settlement was scheduled for January 13, 2025, at 9:30 a.m. PT.
On January 16, 2025, Cash App was ordered to pay $120m to harmed customers and pay $55m fine to victims relief fund. Cash App was given 120 days to submit a plan as to how they will provide redress which means that by May 16, 2025 Cash App Class Action plaintiffs will either be paid or learn specifically when they will be paid.
If you haven’t received payment within a reasonable timeframe after approval, contact the settlement administrator for updates.
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