Key Takeaways
- Cash App and its parent company Block, Inc. have agreed to a $15 million class action settlement to resolve allegations of negligence in protecting user data, following unauthorized access and fraudulent transactions.
- Eligible users can claim up to $2,500 from the settlement by submitting a claim through the official settlement website before the November 18, 2025 deadline.
- The Consumer Financial Protection Bureau (CFPB) has separately ordered Block to refund $120 million and pay a $55 million penalty for failures in fraud prevention and data protection, highlighting ongoing regulatory scrutiny.
Overview of the Cash App Settlement Lawsuit
Background and Allegations
The Cash App settlement lawsuit stems from a class action filed against Block, Inc. (formerly Square, Inc.) and its subsidiary, Cash App Investing, LLC. Plaintiffs allege that the companies failed to adequately protect user data, resulting in unauthorized access and fraudulent transactions. The lawsuit claims that these failures exposed sensitive user information, leading to financial losses for affected individuals.
The settlement does not require Block, Inc. or Cash App Investing, LLC to admit any wrongdoing. Instead, the companies have agreed to resolve the allegations by establishing a settlement fund for eligible users. The case was approved by a federal court in California, as documented by Courthouse News Service.
Scope of the Settlement
The settlement covers users who utilized Cash App since 2018 and may have been affected by the alleged data breach. The total settlement amount is $15 million. Eligible users can claim up to $2,500 in compensation, depending on the extent of their losses and the number of valid claims submitted.
The official settlement website, https://cashappsecuritysettlement.com/, provides comprehensive information about the settlement, including eligibility criteria, claim submission instructions, and important deadlines.
Details of the Class Action Settlement
Who Is Eligible?
Eligibility for compensation is generally limited to individuals who used Cash App between 2018 and the date of the alleged data breach. To determine eligibility, users can visit the settlement website’s lookup tool, where they can enter their Notice ID or other identifying information.
How to File a Claim
To participate in the settlement, eligible users must submit a claim form by November 18, 2025. The process involves:
- Visiting the official settlement website.
- Reviewing the FAQs for guidance.
- Downloading and completing the claim form, available under Important Documents.
- Submitting the form online or by mail, as instructed.
Claims must be supported by documentation of losses, such as evidence of unauthorized transactions or related financial harm.
Settlement Approval and Distribution
The settlement was approved by a federal court in California, ensuring that funds will be distributed to affected users. The approval process and final settlement agreement are detailed in the Courthouse News Service article.
Once all valid claims are processed, compensation will be distributed according to the terms of the settlement. The amount each claimant receives may vary based on the total number of claims and the documented losses.
Regulatory Action by the CFPB
Overview of the CFPB Order
In addition to the class action settlement, the Consumer Financial Protection Bureau (CFPB) has taken separate enforcement action against Block, Inc. In 2024, the CFPB ordered Block to:
- Refund $120 million to consumers.
- Pay a $55 million penalty for failures in fraud prevention and data protection.
This regulatory action is distinct from the class action settlement but underscores the seriousness of the issues raised. The CFPB’s order and related information can be found on the CFPB’s official website.
Impact on Cash App Users
The CFPB order requires Block to compensate certain consumers affected by fraud or data protection failures. Users who believe they may be eligible for compensation under the CFPB order can find more information on the Cash App help page.
It is important to note that the CFPB order and the class action settlement are separate processes. Users may be eligible for relief under one or both, depending on their circumstances.
How to Protect Yourself and Next Steps
Reviewing Your Eligibility
If you have used Cash App since 2018, it is advisable to check your eligibility for the class action settlement. Visit the settlement website and use the lookup tool to verify your status. Review the FAQs and Important Documents for detailed instructions.
Submitting Your Claim
Submit your claim before the November 18, 2025 deadline. Gather any documentation that supports your claim, such as records of unauthorized transactions or correspondence with Cash App support.
Monitoring for Updates
Because the settlement is the result of a legal process, updates may occur as claims are processed and funds are distributed. The settlement website will post important notices and updates as they become available.
Additional Resources
Broader Implications for Digital Payment Platforms
The Cash App settlement lawsuit and the CFPB’s enforcement action highlight ongoing concerns about data security and consumer protection in the digital payments industry. As more consumers rely on mobile payment platforms, companies face increasing scrutiny from both regulators and the courts regarding their responsibility to safeguard user data and prevent fraud.
This case serves as a reminder for users to remain vigilant about their financial accounts and to take prompt action if they suspect unauthorized activity. It also underscores the importance of regulatory oversight in ensuring that digital payment providers maintain robust security measures.
Conclusion
The Cash App settlement lawsuit represents a significant development for users affected by data breaches and unauthorized transactions. Eligible users should review the official settlement website, determine their eligibility, and submit claims before the deadline. The separate CFPB order further demonstrates the regulatory attention on digital payment platforms and the need for strong consumer protections.
For attorneys and legal professionals seeking in-depth research and analysis, Counsel Stack offers comprehensive legal resources at www.counselstack.com.
Disclaimer: This guide provides a general overview of the Cash App settlement lawsuit and related regulatory actions. It is not legal advice. The information is based on publicly available sources and may be subject to change, especially as the case is ongoing. For specific legal advice or the most current updates, consult the official settlement website or a qualified attorney.
