If you have used Square or Cash App services in recent years, you may be eligible for a portion of a multi-million dollar class action settlement. This legal resolution follows allegations regarding data security incidents and unauthorized account access. Understanding your rights and the steps required to file a claim is essential for ensuring you receive the compensation you may be owed.
This guide provides a straightforward breakdown of the settlement details, who qualifies as a class member, and how to successfully navigate the filing process. By following these steps, you can secure your claim before the upcoming deadlines pass.
What Is the Square Settlement About?
The settlement is the result of a class action lawsuit filed against Block, Inc. (formerly known as Square, Inc.) and Cash App Investing. The lawsuit alleged that the companies failed to implement adequate security measures, leading to two distinct data security incidents. The first incident occurred in 2021 when a former employee accessed sensitive reports without authorization. The second incident involved an unauthorized third party gaining access to certain accounts in 2023.
While the companies have denied any wrongdoing or liability, they have agreed to a $9.1 million settlement fund. This fund is intended to compensate users for documented financial losses, lost time, and other expenses related to these security events. By settling, the parties avoid the costs and uncertainty of a prolonged trial, providing faster relief to affected individuals.
Who Is Eligible to File a Claim?
Eligibility is a critical first step in the process. You are generally considered a class member if you are a current or former customer of Square or Cash App and your personal information was involved in the security incidents. Specifically, the settlement covers individuals who held accounts between August 23, 2018, and the present day.
Most eligible individuals should have received a notice via email or postal mail containing a unique Notice ID and Confirmation Code. However, even if you did not receive a notice, you may still be eligible to file a claim if you can provide documentation that your account was impacted during the relevant periods. Eligibility typically falls into two main categories:
- Out-of-Pocket Losses: Individuals who experienced actual financial loss, such as unauthorized transactions or identity theft expenses.
- Lost Time: Individuals who spent significant time addressing issues related to the security incidents, even if they did not lose direct funds.
Specific Criteria for Documentation
To qualify for a payout, you must demonstrate that the losses you incurred are “fairly traceable” to the data incidents. This means the issues must have happened after the security breaches were disclosed or during the timeframe when your data was vulnerable. Having bank statements, credit monitoring receipts, or communication logs with customer support will greatly strengthen your claim.
How to File Your Claim Online
The most efficient way to submit your claim is through the official settlement website. The online portal is designed to guide you through the process step-by-step, ensuring all necessary information is captured. Before you begin, gather any relevant account information and your Notice ID if you received one.
Step 1: Access the Settlement Portal
Navigate to the official settlement administration website. Look for a button or link labeled “Submit a Claim” or “File Online.” This will take you to a secure form where you can begin entering your details.
Step 2: Enter Your Notice Information
If you received a notice in the mail or via email, enter your Notice ID and Confirmation Code. This will pre-populate some of your information and link your claim to the official records. If you do not have these codes, there is usually an option to proceed by manually entering your contact information and account details.
Step 3: Choose Your Claim Type
You will be asked to select the type of compensation you are seeking. You can claim for out-of-pocket expenses, lost time, or both. Be honest and accurate in this section, as the settlement administrator will review these details closely.
Step 4: Upload Supporting Documentation
This is the most important part of the process. You must upload clear copies of any evidence that supports your claim. This could include:
- Bank or credit card statements showing unauthorized charges.
- Receipts for credit monitoring or identity theft protection services.
- Police reports or identity theft affidavits.
- Logs of time spent (up to a certain hourly limit) resolving account issues.
Step 5: Review and Submit
Carefully review all the information you have provided. Ensure your mailing address and payment preference (such as a check or digital payment) are correct. Once you submit the form, you should receive a confirmation number. Keep this number for your records, as you may need it to check the status of your claim later.
Understanding Potential Payout Amounts
The amount of money each class member receives depends on several factors, including the type of claim filed and the total number of people who participate in the settlement. Because the $9.1 million fund is capped, individual payments may be adjusted proportionally if the total value of valid claims exceeds the available funds.
Compensation for Out-of-Pocket Losses
Class members can claim reimbursement for documented out-of-pocket losses up to a specific limit, often reaching several thousand dollars. This includes costs like bank fees, professional fees for accountants or attorneys, and costs associated with freezing or unfreezing credit reports.
Compensation for Lost Time
If you spent time resolving issues related to the data incidents, you might be eligible for compensation for “Lost Time.” This is typically paid out at a set hourly rate. Most settlements of this nature allow for a maximum of 3 to 5 hours of lost time, provided you can describe the actions you took during those hours.
Important Deadlines to Remember
Missing a deadline will result in the forfeiture of your right to claim any compensation. It is vital to act quickly once the settlement is open for claims. While dates can occasionally shift due to court orders, you should keep the following milestones in mind:
- Claim Filing Deadline: This is the final date by which your claim must be submitted online or postmarked.
- Exclusion Deadline: If you wish to sue the companies individually, you must “opt-out” or exclude yourself by this date.
- Objection Deadline: If you disagree with the terms of the settlement, you must file a formal objection by this date.
- Final Approval Hearing: The date the court will decide whether to officially approve the settlement and authorize payments.
Payments are typically distributed only after the court grants final approval and any potential appeals are resolved. This process can take several months after the filing deadline has passed.
Conclusion
The Square class action settlement offers a pathway for affected users to recover losses and receive compensation for the time spent dealing with security concerns. By gathering your documentation and filing your claim through the official portal, you can ensure your voice is heard and your rights are protected. Remember to double-check all entries for accuracy and submit your claim well before the deadline.
For more information on protecting your digital identity or navigating other consumer rights issues, explore our articles on online security best practices and managing digital financial accounts safely. Staying informed is your best defense in the modern digital landscape.