Back in August 2024, Cash App reached a settlement of $15 million to resolve allegations of negligence in security matters. Cash App, without a doubt, is one of the best platforms for financial transactions. Still, mistakes can happen, and even the company had to face a lawsuit for a big security incident.
But what actually happened, and how people are going to get paid as per this settlement? Well, that’s what I am going to discuss in this article.
Here, I’ll discuss the Cash App Settlement in detail. I’ll go over its payouts, timeline, as well as eligibility details, and explain them comprehensively.
Let’s start.
What is Cash App Settlement?
Cash App Settlement is a lawsuit that has been filed against the financial platform Cash App, along with its parent company, Block Inc.
According to this lawsuit, the companies are bound to pay $15 million to people who were affected by unauthorized access to their accounts.
The basic reason behind this lawsuit is Cash App’s negligence towards compliance. One of the former employees of this company illegally accessed its data center. After that, the employee accessed users’ accounts, and several unauthorized transactions took place.
The company investigated the situation and found out the reason behind this chaos. Later on, it explained the whole situation to all the users, which led to the filing of a class-action lawsuit.
Timeline Of Cash App Settlement:
As a Cash App user who was affected by security negligence of the company, you will be interested in knowing the timeline of this incident.
It will help you understand what happened, when it happened, and when you will be receiving your deserved money. I’ve given the details of this timeline below:
1. Unauthorized Database Access – December 2021:
The whole incident occurred back in December 2021 when the Cash App noticed unusual activities in the database.
Turned out, a former employee has had access to the database and played around with several client accounts. Reportedly, this illegal access caused inconveniences to over 8 million users.
2. Public Announcement – April 2022:
Later on in April 2022, Cash App and Block Inc. finally announced that the company was under a security threat and its database was breached. This was the point that created public awareness about the security negligence of the company and user backlash over the incident.
3. Lawsuit Filing – Later Half Of 2022:
The security breaches caused a lot of waves, and an official class action lawsuit was filed against Cash App and Block Inc. in the second half of 2022.
4. Legal Proceedings – 2023 To 2024:
After the lawsuit was filed, both legal sides took part in the proceedings that went on for several months. Finally, the teams agreed upon an amount of $15 million to be paid as a settlement for the damages faced by the users.
5. Opening Of The Claim Period – August 2024:
After the amount was finalized, Cash App opened the claim period and allowed people to submit claims on a dedicated website for Cash App settlement. People who met the eligibility criteria started submitting claims.
6. Final Approval Hearing – January 13, 2025:
A final approval hearing was set to occur on January 13, 2025, by the court. This hearing was to finalize the decision whether or not the company has to pay settlement money. The court approved this hearing.
7. Payout Distribution – Late 2025 To Early 2026 (Expected):
Now, this is the part for which most of you guys might be interested in. The payout distribution will occur somewhere between late 2025 to early 2026. The exact period hasn’t been disclosed by the company or the court. So, if you meet the requirements and are eligible according to the criteria, you’ll be receiving your payment during this period.
Cash App Settlement Payouts
The total amount that Cash App is bound to pay according to the lawsuit is $15 million. Now, this payout includes different important details that you should be aware of.
1. Out-Of-Pocket Losses
A large chunk of the decided money will go to people who faced out-of-pocket losses because of the data breaches. Each person who’s eligible for a certain criterion (that I’ll get to in a minute) will receive up to $2,500.
2. Time Loss Compensation
Cash App is going to compensate people whose time was lost during this whole fraudulent incident. People who spent time in order to understand and resolve the issue through different ways, such as contacting customer support, will be compensated.
Each person is going to get paid $25 per hour as time loss compensation. However, the total limit of this compensation per person is $75 for 3 hours.
3. Transaction Losses:
Another thing for which Cash App users will be compensated is transaction losses. In this type, people who suffered from transaction losses during the eligibility period. This transaction loss could be in the form of unauthorized transfers, withdrawals, etc.
So, if you’ve experienced these unauthorized transaction losses, you might be eligible to take a portion of the settlement. However, the exact amount of this compensation hasn’t been declared clearly.
Eligibility Criteria For Cash App Settlement:
In order to get qualified for the Cash App Settlement compensation, you need to be eligible according to a certain criterion.
This criterion is designed so that only deserving people can get the compensation money. The detail of this criterion is given below:
1. Account Usage Period:
The first thing that you need to be eligible for is the account usage period. According to the settlement details, you must be an active user of Cash App or Cash App Investing from August 23, 2018, to August 20, 2024. If you’re account wasn’t active before or after these dates, you are not eligible for Cash App Settlement compensation.
2. Evidence Of Account Breach:
The next thing that you need to have is evidence of unauthorized access to your account. You need authentic documentation provided by an authentic third party (such as a bank) that proves that your account was accessed by unauthorized personnel. It could include details like unauthorized transactions, withdrawals, or account takeover.
There are different types of documents that you can submit in order to get approved. Here are some of them:
- Screenshots of suspicious activity.
- The bank statement shows unusual activity in the account.
- Confirmation document received from Cash App support indicating that your account faced errors.
- Police reports related to identity theft (in regard to Cash App account transactions).
3. Claim Submission Before Deadline:
Another important factor of the criteria is submitting the claim before the deadline. The official deadline for submission was November 18, 2024.
So, if you submitted the claim before this deadline, you’re eligible for the settlement. However, if you failed to submit before it, you will not get any portion of the settlement money.
Final Summary
Cash App settlement refers to the $15 million amount that the company has to pay users who were affected by security breaches. The company faced a huge setback a few years ago, which caused a lot of trouble for its users.
A proper class action lawsuit failed, and the court decided that the company would pay the money. People who were affected by the incident submitted their applications and will be receiving their money later this year or at the start of the next one.
Frequently Asked Questions (FAQs):
1. Is The Cash App Settlement Real?
Yes, the Cash App settlement is real.
2. What is The $2570 Cash App Settlement 2025?
Well, first of all, the amount isn’t $2,570. It’s actually $2,500 and will be paid to people affected by the security negligence of Cash App.
3. How Long Does Cash App Take to Settle?
The official proceedings were continued for a few months before the company settled on an amount of $15 million.
4. How to Get Money From The Cash App Settlement?
To get money from Cash App, you have to submit your claim application on the dedicated official website for Cash App settlement.
