Cash App Users Can Claim up to $2,500 Following a $15 Million Class Action Settlement

If you are or were a user of the popular digital wallet and finance app Cash App, you may be able to claim up to $2,500 following a recent $15 million settlement that was reached in a recent class action lawsuit.

The lawsuit was the result of two data breaches that occurred over the past five years. The first, a 2021 security breach, involved a former employee gaining access to and downloading reports of U.S.-based users without their permission. These reports included sensitive user data that had an impact on select users.

Another data breach was uncovered in 2023 when an unauthorized user gained access to Cash App accounts using phone numbers linked to those accounts. After gaining access, fraudulent transactions took place on unsuspecting users.

The class action lawsuit accused Oakland California-based Cash App and its parent company, Block, Inc., of failing to protect user data. The plaintiffs also accused the tech companies of failing to install adequate security measures and controls to keep unauthorized users from accessing sensitive data. Additionally, when the security breaches happened and customers began experiencing fraudulent transactions and voicing their concerns or frustrations with the company, Cash App and Block mishandled the customer complaints that came in.

While Cash App and Block both denied any wrongdoing, they agreed to settle with the plaintiffs. Earlier this month, they agreed to a $15 million settlement to end the litigation. Both companies have also agreed to take proactive steps that would strengthen the protocols and measures in place to protect user data. Outside of attorneys fees and other costs, settlement funds will go directly to customers who file an eligible claim.

Eligible claimants will receive an emailed or mailed notice that includes a notice ID and confirmation code that will enable them to file a claim. Even if customers have not received the notice, they can still file a claim online. Customers have until November 18 to file a claim.

While it's still unclear how much money claimants will receive, it’s reported that Cash App users may be able to file claims of up to $2,500. The claims can cover any out-of-pocket losses. For example, claims can include losses from:

• Overdraft fees
• Credit monitoring fees
• Fraudulent withdrawals, and other personal losses.

According to the settlement documents, both Cash App and Block have denied any wrongdoing in the events that unfolded. The settlement explains that both companies “have denied and continue to deny that they were at fault and further deny that they are liable to Plaintiffs or the Settlement Class for any amounts.”

The District Court for the Northern District of California is scheduled to decide whether to approve the proposed settlement in a mid-December hearing.