Cash App users may be eligible for compensation through a proposed settlement related to a class action lawsuit against Cash App and its parent company, Block Inc. The settlement could provide up to $2,500 for out-of-pocket losses to users who have been affected by unauthorized access to their accounts or fraudulent transactions. The total settlement amount is set at $15 million, covering legal fees, administrative costs, and valid claims.
To be eligible for compensation, users must have been current or former customers of Cash App or Cash App Investing, or their affiliates, and must have experienced unauthorized access to their accounts or transactions between August 23, 2018, and August 20, 2024. Those interested in filing a claim need to submit their requests online or by mail by November 18, 2024.
The lawsuit, consolidated under the case Salinas, et al. v. Block, Inc. and Cash App Investing, LLC, alleged negligence and breaches of obligations by Cash App and Block. Specifically, it involved unauthorized access to account data by a former employee and incidents involving recycled phone numbers used to access accounts. Despite the settlement, Cash App and Block Inc. deny any wrongdoing or liability.
Users who do not wish to participate in the settlement can opt out by notifying the settlement administrator by November 1, 2024. This deadline also applies for those wishing to object to the settlement terms. Those opting out retain the right to pursue future legal action on the same issues.
Claimants must provide specific documentation to receive compensation, which includes up to $2,500 for out-of-pocket expenses and potential reimbursement for transaction losses. Additionally, affected individuals can claim $25 per hour for up to three hours of lost time. A final decision on the proposed settlement is expected from the District Court for the Northern District of California in mid-December.
