Cash App $2,500 indemnity: Who can apply and how to make a claim

Some Cash App users may be eligible for a payout of up to $2,500 after the company reached a multimillion-dollar settlement after being sued.

Users or consumers can take legal action against companies when they fail to comply with the terms of their services or advertisements, as well as when there are privacy violations. If the situation is widespread, a class action lawsuit can be filed for the benefit of others.

This is the case for some Cash App users, who allege that Block, Inc. and Cash App Investing were negligent, made false statements, and breached other obligations.

According to the complaint, the companies breached certain obligations in connection with a data security incident that Cash App Investing disclosed in April 2022, a data security incident that Block disclosed in October 2023, and alleged unauthorized and fraudulent withdrawals and transfers of funds.

In 2022, Cash App confirmed that a former employee had accessed account data without permission, while in 2023 it was revealed that an unauthorized user was able to access accounts using recycled phone numbers. The company was also accused of failing to implement adequate controls to prevent unauthorized account access.The companies reached a $15 million settlement to compensate users although they denied “having done anything wrong.”

Cash App offers $2,500 in compensation: who qualifies and how to claim?

Those eligible for compensation include any Cash App or Cash App Investing user whose information was accessed without permission, or who had unauthorized or fraudulent withdrawals or transfers of funds to or from their account between August 23, 2018 and August 20, 2024.

To claim the money, it is necessary to submit a valid and timely Claim Form. This document must be submitted no later than November 18, 2024.

Eligible users who submit a valid claim form on time and have it approved will be entitled to compensation:

Refund for money losses

Class Members may receive up to $2,500 if they experienced a data security incident, unauthorized account incident, or error resolution deficiency in connection with their Cash App account or Cash App Investing account that occurred between August 23, 2018, and August 20, 2024.

Refund for lost time

Users may submit a claim for reimbursement of lost time of up to three (3) hours at a rate of $25 per hour.

Transaction losses

They may also file a claim for reimbursement for documented transaction losses arising from an unauthorized account incident that occurred from August 23, 2018 through August 20, 2024.

In this case, a copy of a notice to Defendants regarding the unauthorized account incident, a copy of a police report regarding the unauthorized account incident, or documentation showing the Settlement Administrator that an unauthorized account incident occurred must be submitted.

For more details, please visit the agreement web portal.