Taxpayers can claim payment from $14.95 million ‘privacy’ settlement – but how you file will determine if you see cash
By Josephine Fuller,
2024-08-30
A POPULAR tax filing service agreed to pay customers $14.95 million after allegedly sharing personal information.
Americans who filed their taxes on TaxAct.com may be eligible for a payment from the settlement.
Users claimed the do-it-yourself filing service shared personal information with third-party services like Meta and Google .
This allegedly violated federal and state laws.
TaxAct offers free filing and other plans that cost as much as $99.99.
The company denied wrongdoing but agreed to the settlement to resolve the claims.
ELIGIBILITY
Customers who filed a tax return and a form 1040 through the service between January 1, 2018, and December 31, 2022, may qualify for part of the settlement .
Both individual and joint filers can qualify for a claim.
There are additional settlement subclasses for California residents, but it’s unclear if they will get extra compensation.
The payouts will be about $18.65, and class members will also receive free tax services for the 2024 tax year.
The deadline to file a claim is September 11.
SECURITY SETTLEMENT
Americans with insurance through Group 1001 may qualify for a one-time payment of up to $5,000.
Customers filed a class action lawsuit after the company experienced a data breach.
The lawsuit alleged that Group 1001 failed to protect customers from the February 2023 breach.
Customers, their dependents, payees, and even employees could have had sensitive information exposed.
The company allegedly failed to implement proper cyber security measures that could’ve prevented the breach.
Group 1001 denied wrongdoing but agreed to pay $4.76 million to resolve claims and avoid further legal costs.
What's a class-action settlement?
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Eligible clients should have received a Class Member ID in the mail, which they must use when filing a claim.
Individuals who didn’t receive a postcard can contact the settlement administrator for more information.
Claimants must have documentation that proves they faced losses due to bank fees, credit card costs, travel expenses, communication charges, and even lost time at a $20 per hour rate.
Class members have until October 10 to file a claim.
Employees of a prominent company may be eligible for four payments from an overtime settlement .
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