August 9, 2024, 3:24 PM
NEW YORK (AP) — Current and former Cash App users could be eligible for a hefty piece of a proposed class-action settlement from the popular online payment service.
Earlier this year, Cash App Investing and its parent company Block Inc. agreed to pay $15 million to settle a lawsuit that alleged a “failure to exercise reasonable care” in protecting user information leading up to and after recent data breaches. The class-action complaint cited two incidents where access to some account data was compromised, saying this resulted in numerous unauthorized charges impacting Cash App customers.
Now, those consumers can submit a claim for a settlement payment — which could include reimbursement of up to $2,500 in out-of-pocket losses — ahead of final approval. Here’s what you need to know.
Why was Cash App sued?
Cash App and Block, which is based in Oakland, California, were sued over their response to security breaches in recent years and allegations that they failed to implement sufficient security measures to protect customers.
The class-action pointed to a 2021 incident, which the company disclosed in 2022, where a former employee downloaded reports of some U.S. users without permission. It also noted another breach disclosed in 2023, when an unauthorized user accessed some Cash App accounts using phone numbers that were linked to them.
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