Cash App users could claim up to $2,500 as part of major settlement

Users of Block and Cash App could be entitled to up to $2,500 as part of a class-action settlement reached between users and the company.

Cash App was sued after users accused the company of being negligent when a former employee accessed account data without permission in 2022. They said the company was also negligent when an "unauthorized user" accessed accounts in 2023 by using recycled phone numbers linked to the accounts.

The users said Cash App "failed to implement appropriate controls to prevent unauthorized access" to their accounts.

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As part of the settlement, Cash App does not admit wrongdoing.

What is Cash App?

Cash App is an app that allows customers to send and receive money to each other like Venmo and Apple Pay. It can also be used to send, spend or invest in stocks or bitcoin.

Who is eligible?

Those who have used the app at some point since 2018 might be eligible. Those who suffered out-of-pocket losses and can prove it using third-part documentation can claim up to $2,500.

Out-of-pocket losses may include costs associated with credit monitoring, credit freezes, requesting a credit report, canceling a payment and unrefunded overdraft fees.

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Those who had a monetary loss due to an authorized withdrawal or refund are eligible.

Cash App will pay up to $15 million in claims, according to the filing.

How a claim is made

Users have until Nov. 18, 2024, to submit a claim online . Making a claim, however, means that the user joins the settlement and would not be able to seek additional damages from this incident.

A federal court is expected to finalize the settlement on Dec. 16. Payments could be sent following the hearing.