Cash App agrees to $15 million settlement

Cash App users might be charged up to $2,500 thanks to recent $15 million settlement.

Block Inc., the parent company of the favored electronic money transfer platform, Agreement to settle claims of negligence following two data breaches via Cash App that compromised users’ personal information. According to the category motion lawsuit, Block and Cash App Investing were found guilty of “negligence” and breached other duties to users after a former worker accessed account data without permission in 2022.

In a 2022 filing with the U.S. Securities and Exchange Commission, Block disclosed that about 8.2 million current and former users were notified of the breach. According to the lawsuit, Block was also negligent in 2023 when an “unauthorized user” accessed Cash App users’ accounts using recycled phone numbers that were related to previous accounts.

While Cash App, Cash App Investing, and Block have denied any liability or wrongdoing cited within the lawsuit, they’ve agreed to a $15 million settlement. At this time, eligible users who previously or currently use Cash App or Cash App Investing have had their accounts accessed without proper authorization or were on the receiving end of unauthorized bank withdrawals or transfers between August 23, 2018, and August 20, 2024.

Eligible users will give you the chance to submit a claim for up to $2,500 “for out-of-pocket losses” they might have experienced in the course of the aforementioned period. To achieve this accurately, consumers will need to provide “third-party documentation” that corroborates a connection to a “data security incident, unauthorized account event, or error resolution deficiency” involving the person’s Cash App or Cash App Investing account.

Additionally, eligible users may also file a claim for lost time and receive up to $75 due to the $25 per hour limit for 3 hours. They may also receive compensation for any documented transaction losses brought on by an “unauthorized account event.” To qualify for the latter, individuals would have to submit at the least one in every of the next options: “a copy of the notification of the unauthorized account event, a copy of the police report regarding the unauthorized account event, or documentation that your account was accessed without your consent.”

Only one claim might be filed by a Cash App user, even when you have got multiple accounts, and it have to be filed by November 18, 2024, via a web based form or by mail. Those wishing to opt out of the settlement must send written notice by November 1; nevertheless, users must still file an official claim to be eligible for a payout.

It has not yet been disclosed when the settlement payments will probably be distributed, but a final approval hearing is scheduled for Dec. 16, 2024, and might be rescheduled “without further notice,” according to the web site. Created for settlement.