Full Breakdown
Cash App Agrees to $15 Million Class-Action Settlement
By Drooid · · How we work
Cash App Settlement Overview
Block Inc. and its mobile-payment platform Cash App have agreed to resolve a class-action lawsuit alleging inadequate protection of user data after two security incidents. While the companies deny any wrongdoing, they consented to a settlement that creates a $15 million fund for eligible claimants. The settlement was given final court approval on March 27 2025.
Eligibility and Claim Process
The settlement covers current and former Cash App users whose accounts or personal information were accessed without permission, or who suffered fraudulent withdrawals, between August 23 2018 and August 20 2024. Claimants had to submit their filings by the deadline of November 18 2024; no new claims are being accepted. Approved claimants may receive up to $2,500 for documented out-of-pocket losses, plus compensation for up to three hours of lost time at $25 per hour. Payments are slated for October, according to the official settlement website.
Financial Terms of the Settlement
The $15 million fund will be distributed based on the amount of loss each claimant can substantiate, subject to the maximum limits described above. Not every claimant will receive the full $2,500 or the hourly compensation; actual payouts will vary according to approved claim amounts. The settlement is distinct from other legal actions involving Block, including a separate $45 million multi-state settlement and ongoing federal enforcement actions related to fraud protections and customer service.
Official Positions
Block and Cash App have publicly stated that they deny the allegations of inadequate security but chose to settle to avoid prolonged litigation. The companies did not provide additional comment when contacted by the Independent. The federal court’s approval on March 27 2025 formalized the agreement, allowing the settlement fund to be administered to qualifying users.
Timeline of Key Dates
- August 23 2018 – August 20 2024: Period during which alleged unauthorized access and fraudulent withdrawals occurred.
- November 18 2024: Claim filing deadline.
- March 27 2025: Federal court grants final approval of the settlement.
- October 2025 (scheduled): Distribution of payments to approved claimants.