Cash App $15 Million Legal Settlement 2024- Customers can claim up to $2500

The recent $15 million Cash App legal settlement offers eligible customers the chance to claim compensation for losses related to security issues on the platform.

This settlement stems from a class-action lawsuit against Block (formerly Square) and Cash App Investing, addressing claims of negligence and inadequate security measures that led to unauthorized access and fraudulent transactions.

While the companies deny any wrongdoing, they agreed to the settlement to avoid further litigation.

Cash App Class Action Lawsuit

The lawsuit was initiated by plaintiffs Michelle Salinas, Raymel Washington, and Amanda Gordon after a former Cash App Investing employee improperly accessed customer data in 2022.

Further incidents of unauthorized access involving recycled phone numbers occurred in 2023, raising concerns about Cash App’s security practices.

The plaintiffs alleged that these failures led to financial losses and inadequate customer support when addressing fraudulent activities.

Details of the Allegations

The key issues raised in the lawsuit include:

• Security Breach in 2022: A former employee of Cash App Investing accessed sensitive customer information without authorization.
• Unauthorized Access in 2023: Accounts were compromised through recycled phone numbers, causing further security concerns.
• Negligence and Poor Customer Support: Plaintiffs accused Cash App of failing to implement proper security measures and adequately respond to complaints, resulting in financial losses and frustration for users.

Settlement Objectives

The settlement seeks to provide financial compensation to affected users while ensuring improved security measures at Cash App to prevent future incidents.

By resolving the matter through a settlement, both parties avoid the uncertainty and expense of a prolonged court trial.

Who is Eligible?

To be eligible for compensation from the settlement, you must:

• Be a current or former customer of Cash App or Cash App Investing.
• Have had your account or personal information accessed without authorization.
• Experienced fraudulent withdrawals, unauthorized transfers, or inadequate error resolution between August 23, 2018, and August 20, 2024.

Understanding Settlement Benefits

The $15 million settlement fund will be used to cover legal fees, administrative costs, and direct compensation to class members.

Eligible individuals can claim compensation under different categories based on their losses.

Monetary Compensation

The settlement offers compensation for several types of losses:

1. Out-of-Pocket Losses: Up to $2,500 per claimant for costs related to security breaches, including identity theft protection, replacement of payment cards, credit monitoring, overdraft fees, and more.
2. Lost Time: Compensation for up to three hours of time spent dealing with security incidents, at a rate of $25 per hour.
3. Transaction Losses: Reimbursement for financial losses caused by unauthorized account activities that have not been refunded by Cash App or any other financial institution.

Pro-Rata Distribution

If the total claims exceed the settlement fund, payouts will be reduced proportionally.

If there are leftover funds after all valid claims are paid, the excess may be distributed among the claimants or donated to a charitable organization.

Cash App Settlement Claim Submission Process

To claim compensation, eligible individuals must submit a claim by November 18, 2024. The submission process is designed to be simple, with both online and paper options available.

Steps to File a Claim

1. Confirm Eligibility: Ensure you meet the criteria outlined in the settlement agreement.
2. Collect Documentation: Gather necessary evidence such as financial records, receipts, and any communication regarding losses.
3. Submit Claim Form: Complete and submit the claim form either online or by mail, along with the required documents, before the deadline.

Additional Information and Support

For further assistance, claimants can contact the Cash App Security Settlement Administrator.

It’s important to keep contact information updated after submitting a claim to ensure you receive any potential payouts.

Conclusion

The $15 million Cash App settlement provides a pathway for affected users to receive compensation for security lapses that caused unauthorized access and financial losses.

This settlement is a reminder of the importance of maintaining robust security measures and responsive customer service in the rapidly evolving digital finance industry.

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