Cash App Class Action Lawsuit Explained: Claim Deadlines, Payouts, and More

If you’re a Cash App user impacted by the 2021 data breach, you’ve probably heard about the class action settlement. Although the claim submission deadline has passed, many users are still curious about what this means for them. Here’s everything you need to know about the settlement, eligibility, and what happens next.

What Was the Cash App Data Breach?

In December 2021, a major data breach affected approximately 8.2 million Cash App Investing customers. The breach occurred when a former employee of Block Inc., the parent company of Cash App, accessed and downloaded sensitive user data without authorization.

The data breach exposed users’ personally identifiable information, sparking outrage and legal action. Plaintiffs argued that Cash App and Block Inc. failed to take sufficient measures to protect consumer data, leading to significant risks for affected users.

Details of the Class Action Settlement

A lawsuit filed against Cash App Investing and Block Inc. led to a $15 million settlement fund. This fund was established to reimburse users who experienced financial losses or spent time resolving issues caused by the breach.

The deadline for Cash App users to submit claims for reimbursement related to the 2021 data and security breach has expired, leaving some users with lingering questions about the process.

As part of a recent settlement, the mobile payment service was required to pay $15 million in damages, with users given until November 18, 2024, to file their claims. While most affected users have already submitted claims, those who missed the deadline may wonder if any options remain.

Who Was Eligible to File a Claim?

To be eligible for reimbursement, users had to meet the following criteria:

1. Account Timeline:
   • You needed to have a Cash App account established between August 23, 2018, and August 20, 2024.
2. No Previous Reimbursement:
   • Users who already received compensation from Cash App, Block Inc., or any third party for losses tied to the breach were not eligible.
3. Documented Losses:
   • Affected users needed to provide documentation showing financial losses, fraudulent activity, or time spent addressing the breach.

How Much Could Users Receive?

Eligible users could claim compensation for:

1. Monetary Losses:
   • Users could receive up to $2,500 for documented financial losses caused by the data breach. the Cash App website said.
2. Lost Time:
   • Users could claim up to three hours of lost time, compensated at $25 per hour, for efforts like monitoring accounts or resolving unauthorized transactions.
3. Transaction Losses:
   • Claims were available for users who experienced unauthorized withdrawals or transfers and were unable to recover the funds.

Missed the Deadline? Here’s What You Can Do

If you missed the claim deadline, you might still have options. Contact the legal team that represented the plaintiffs in the class action lawsuit:

• Law Firm: Kantrowitz, Goldhamer & Graifman
• Contact: 201-897-7293
• Website: kgglaw.com

While it’s unlikely you’ll be able to submit a claim for the settlement fund now, speaking with legal experts can help you understand any remaining avenues for compensation.

Signs Your Account May Have Been Affected

If you suspect your Cash App account was part of the breach, here are some red flags to watch for:

• Unauthorized transactions or withdrawals.
• Fraudulent activity in linked bank accounts.
• Emails or notifications about changes to your account without your knowledge.

Users are advised to carefully monitor their accounts and report any suspicious activity immediately.

Final thoughts

The Cash App class action settlement provided affected users an opportunity to claim compensation for financial losses or lost time resulting from the December 2021 data breach, which impacted over 8 million users.

While the claim submission deadline passed on November 18, 2024, those who missed it are advised to consult the legal team for further guidance.

This incident underscores the importance of vigilance in account security and proactive measures to safeguard financial information against potential breaches and their long-term repercussions.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.