Cash App settlement: Deadline to submit claim for up to $2,500 nears

(NEXSTAR) — If you've used Cash App since 2018, you have only about a week to claim your part of a $15 million settlement reached in a class action lawsuit.

Block Inc., which owns Cash App, and Cash App Investing were accused of negligence and breaching obligations they had to users in 2022 when a former employee accessed account data without permission. Block said in a 2022 filing with the U.S. Securities and Exchange Commission that it was notifying roughly 8.2 million current and former users about the incident.

According to the lawsuit, Block was negligent again in 2023 when "an unauthorized user" gained access to some Cash App accounts while using recycled phone numbers linked to those accounts.

Block and Cash App Investing were also accused of failing to take the necessary steps to protect accounts after both incidents and did not "adequately resolve customer complaints regarding unauthorized or fraudulent transactions."

While Block and Cash App Investing denied liability and wrongdoing, they agreed earlier this year to the $15 million settlement.

A website dedicated to the settlement says you may be eligible if:

• You have been or were a user of Cash App and/or Cash App Investing.
• Your account was accessed without your permission.
• There were unauthorized or fraudulent withdrawals or transfers with your account between Aug. 23, 2018, and Aug. 20, 2024.

While the deadline to exclude yourself from or object to the settlement has passed, there is still time to submit your claim: the current deadline is Nov. 18, 2024, at 10:59 p.m. PT.

If you received a notice in the mail or via email, you can enter your notice ID and confirmation code on the settlement website. If you did not receive a notice but believe you are eligible, you can complete a claim form online.

Should the settlement and payments be approved, you could receive up to $2,500 "for out-of-pocket losses" experienced during the stated timeframe, the settlement website explains. However, you'll need to provide "third-party documentation" that connects it to "a data security incident, unauthorized account event, or deficiency in error resolution" with your Cash App or Cash App Investing account.

You can also submit a claim to be reimbursed for lost time — capped at $25 an hour for three hours in this case, for a total of $75 — and for documented transaction losses due to "an unauthorized account event." For the latter, you'll need to submit at least one of three options: a copy of a notification of an unauthorized account event, a copy of a police report related to an unauthorized account event, or a document demonstrating your account was accessed without your permission.

You can find more details about these available settlement benefits here.

The website does not yet say when payments will be dispersed. A final approval hearing for the settlement is scheduled for Dec. 16, 2024, though the site notes it may be rescheduled to Jan. 13, 2025, "pending court approval."