Cash App users can now claim their share of a brand new settlement. In today’s digital world, protecting user data is an extreme priority like never before. Further, companies have an imperative responsibility to maintain transparency towards their users in disclosing how their personal data will be used, and if it may be used for endeavors beyond the services these companies offer. When these obligations are not met, it can land these entities with large class suit litigations, whereby they are liable to pay large fines.
New class action lawsuits are facing these powerful entities
User data protection has never before required such extreme interventions from entities. In the digital age, while it has made the world more connected, it has also led to the rise in cybercrime and unauthorized third-party access to user data. When this happens, it risks extreme consequences for these users, such as identity theft and financial fraud occurring.
When this happens to a significant number of users, it may land a company with a class action lawsuit, whereby users seek compensation for incurred expenses for having their sensitive data exposed. Further, these litigations hold companies accountable for not protecting this data by requiring them to change their policies in order to ensure the same mistake does not occur again.
On top of unauthorized party access, companies must also disclose to their users how their data is being used. When this is not done, it risks violating a number of privacy laws, which can also see companies needing to pay severe fines. Recently, Amazon.com, Inc., settled a landmark civil regulatory case brought against it by the Federal Trade Commission (FTC) for this type of violation. The FTC alleges that the company violated consumer protection laws by enrolling its users into an Amazon Prime subscription account without their consent, as well as making it intentionally complex to cancel this subscription.
Cash App users can now claim their share of $147
Recently, the Cash App Security Settlement was announced, whereby Cash App agreed to settle a $12.5 million class action lawsuit. Plaintiffs allege that Cash App violated Washington’s Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act (CPA), whereby individuals were sent unsolicited referral program messages by the company. Cash App maintains that it did not commit any wrongdoing.
The terms of the settlement are outlined as follows:
- Settlement payments will benefit Cash App users who received a referral program message from Cash App between November 14, 2019, and August 7, 2025.
- Eligible class action members will receive between $88 and $147 in compensation.
Class action members must submit a valid claim before October 27, 2025. You must provide the number to which you received the message, and be a resident of Washington.
New litigations for consumer privacy emerge
This year, Cash App is not the only corporation that is being held accountable for misusing user data. Lake Charles Memorial Health recently settled a $2 million class action lawsuit, whereby eligible plaintiffs are entitled to receive up to $5,000 in damages over their sensitive information being exposed to unauthorized third parties. While this monetary amount is substantially more than the Cash App users’ payout, it is intended to cover the expenses associated with having your sensitive information exposed.
These large payouts, which companies are required to pay class members, are often mistaken to be a profit that class members take home. However, when your sensitive data is compromised, you face a variety of expenses pertaining to securing your sensitive data again. This is why it is critical that class members receive such substantial payouts, as they must be compensated for being required to pay these expenses, which is not a result of their own actions.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
