$15M Cash App Data Breach Class Action Settlement : In August 2024, a major $15 million settlement was announced in the class action lawsuit against Cash App, addressing data breaches that affected users in 2022 and 2023. This settlement offers compensation to those impacted by the breaches, which involved unauthorized access to user information.
This blog details everything you need to know about the settlement, including eligibility criteria, the process for submitting claims, and important deadlines. If you were affected by these breaches, it’s crucial to understand the claim submission process to ensure you receive the compensation you’re entitled to. Stay informed about the deadlines and required documentation to take full advantage of this settlement opportunity.
Background on the Data Breaches
Cash App, a financial services platform used for money transfers, vendor payments, and investments, experienced two significant data breaches. The first breach in 2022 involved unauthorized access by an employee to users’ Cash App Investing accounts.
The second breach in 2023 was caused by a third party exploiting recycled phone numbers to gain access to user information. These breaches compromised sensitive personal and financial data, leading to fraudulent transactions and other impacts on users. The settlement aims to address the damages resulting from these security failures.
- 2022 Breach: Unauthorized access by an employee to Cash App Investing accounts.
- 2023 Breach: A third party exploited recycled phone numbers to gain access to user information.
Impact on Users
- Compromised Personal Information: The breaches exposed sensitive user data, including financial and personal details.
- Fraudulent Transactions: Users experienced unauthorized transactions and financial losses due to the compromised information.
- Financial Impact: Affected individuals incurred additional costs, such as bank fees and credit-related expenses, as a result of the breaches.
- Alleged Failure to Protect: The class action lawsuit claims Cash App did not implement adequate security measures to safeguard user information.
- Legal Resolution: The $15 million settlement aims to address these issues by compensating affected users for their documented losses.
Settlement Details
Settlement Amount
The $15 million settlement aims to compensate individuals who experienced losses due to the data breaches. The settlement provides a structured framework for compensation based on the extent of the documented losses.
Compensation Breakdown
Affected class members can claim up to $2,500 for documented losses, which may include:
- Credit Costs: Expenses incurred due to unauthorized transactions or credit issues.
- Bank Fees: Charges from financial institutions related to the breach.
- Travel Expenses: Costs incurred while addressing the breach, such as travel to banks or financial institutions.
- Lost Time: Compensation for up to three hours of lost time at a rate of $25 per hour.
Additional Compensation
For those who experienced fraudulent transactions, additional compensation is available provided sufficient documentation is submitted.
Eligibility Criteria
To be eligible for the settlement, individuals must meet the following criteria:
- Current or Former Customers: You must have been a Cash App user between August 23, 2018, and August 20, 2024.
- Compromised Information: Your account or personal information must have been obtained without your consent, or you must have faced fraudulent withdrawals or transfers during the specified period.
Documentation Required
To substantiate your claim, you will need to provide:
| Document Type | Description | Purpose |
|---|---|---|
| Proof of Purchase | Receipts, bills, or invoices | Verifies the original purchase or transaction. |
| Account Statements | Statements showing unauthorized transactions or issues | Demonstrates financial discrepancies or fraud. |
| Credit Reports | Documentation showing impacts on your credit score | Shows how financial issues have affected credit. |
| Financial Documents | Other relevant financial records | Includes any additional records pertinent to the case. |
| Police Reports | Reports related to fraudulent transactions | Provides official documentation of reported fraud. |
Claim Submission Process
Eligible individuals must complete and submit a claim form by November 18, 2024. The process involves:
Step 1: Gather Documentation
Collect all necessary documents to support your claim. This includes proof of financial losses such as receipts, invoices, bank statements, and any relevant reports. Ensure that all documents are accurate and complete to strengthen your claim.
Step 2: Complete the Claim Form
Accurately fill out the claim form with detailed information about your losses. Provide clear and thorough descriptions to help validate your claim. Before continuing, check for mistakes and omissions.
Step 3: Submit the Form
Send the completed claim form along with all supporting documents to the Claims Administrator. Ensure your submission is made by the deadline to avoid delays. For your own records, be sure to save copies of everything.
Important Deadlines
Key Dates
- Exclusion and Objection Deadline: November 1, 2024
- Claim Form Deadline: November 18, 2024
- Final Approval Hearing: December 16, 2024
Make sure to adhere to these deadlines to ensure your claim is processed in a timely manner.
Legal Representation
Class Counsel
Several legal firms, including the following, are representing the plaintiffs in this case:
- Gustafson Gluek PLLC: David A. Goodwin
- Migliaccio & Rathod LLP: Nicholas A. Migliaccio and Jason S. Rathod
- Kantrowitz Goldhamer & Graifman PC: Gary S. Graifman and Melissa R. Emert
- Scott Hirsch Law Group: Scott D. Hirsch
- Federman & Sherwood: William B. Federman
Defense Counsel
Cash App’s defense is led by Aravind Swaminathan and Michelle Visser from Orrick Herrington & Sutcliffe LLP.
Conclusion
The $15 million Cash App data breach settlement offers a chance for affected users to secure compensation for their losses. To participate, confirm your eligibility and gather the necessary documentation to support your claim.
Submissions must be made by the deadline of November 18, 2024. For assistance, contact the Claims Administrator or visit the settlement website. Acting promptly is essential to ensure you receive the compensation you deserve. Don’t miss out on this opportunity to address the impacts of the breach and recover your losses effectively.
FAQs
What types of losses are covered by the settlement?
The settlement covers documented losses such as credit costs, bank fees, travel expenses, and compensation for lost time. Additional compensation is available for fraudulent transactions with sufficient documentation.
How much can I receive from the settlement?
Eligible class members can receive up to $2,500 for documented losses. Those with evidence of fraudulent transactions may receive additional compensation.
What is the deadline to submit a claim form?
The deadline to submit a claim form is November 18, 2024. Ensure that all required documentation is included to avoid delays or rejection of your claim.