Taxpayers have three ways to claim one-time payments from $14.95 million filing settlement – but you must act fast

A POPULAR tax filing service is paying $14.95 million to users citing claims of privacy violations.

The settlement comes after clients filed a class action lawsuit claiming the company failed to protect their privacy.

According to the lawsuit, TaxAct violated federal and state privacy laws by sharing user information with third parties, like Meta and Google.

Customers who used the do-it-yourself service to file a tax return and a 1040 form may qualify for payment from the settlement.

TaxAct denied any wrongdoing but agreed to the multi-million dollar settlement.

To be eligible, clients must have used TaxAct between January 1, 2018, and December 31, 2022.

If your spouse filed a joint return on the site on your behalf, you may also qualify for a payment.

Most filers will receive payouts of about $18.65, but Californians may qualify for additional benefits due to state privacy laws.

In addition to the monetary payout, class members can receive a free tax service from TaxAct for 2024.

Claims must be filed by September 11, either online or by mail.

However, anyone who previously filed an arbitration demand with TaxAct is excluded from this settlement.

PRIVATE PRACTICE

A data breach resulted in a similar settlement for a brokerage company.

Acrisure, a finance technology and insurance brokerage company, faced a data breach in 2022.

Clients sued, alleging that the company failed to protect consumer data by implementing proper cybersecurity measures.

The suit claims the data breach compromised personal information that put consumers at risk of financial harm.

While Acrisure denied any wrongdoing, the company agreed to an undisclosed settlement to avoid future litigation.

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.

To be eligible for a payment, individuals must have received a notice that their personal information was compromised due to the breach.

Class members can claim up to $4,000 to cover any financial losses related to the breach, such as money lost due to identity theft or fraud.

Individuals can also get $25 an hour for up to four hours of lost time due to the breach.

Claimants will also get two years of credit monitoring and identity protection services.

The deadline to file a claim is October 15, and the final approval hearing for the settlement is November 8.

Another settlement is offering payments of up to $7,200 from a $3.25 million pot.

Plus, see if you qualify for a payment from a $850,000 dry shampoo settlement.