Facebook Begins Payouts from $725 Million Privacy Settlement

Lead Facebook has started sending settlement checks totaling $725 million to millions of U.S. users, resolving long-running claims over sharing personal data with third parties.

Nut Graf The class-action settlement addresses allegations that Facebook violated user privacy by disclosing data from 2007 to 2022, most notably to Cambridge Analytica. After final approval in 2023 and subsequent appeals, payouts are now rolling out, offering claimants modest compensation based on account longevity.

Settlement Background

Facebook’s parent company, Meta, agreed in 2023 to a $725 million fund to resolve claims that it improperly allowed sharing of user data with external entities, including political consultancy Cambridge Analytica. Millions of U.S. account holders who used Facebook between May 2007 and December 2022 were eligible to file claims.

Payment Timeline

• Disbursements began on Wednesday, September 3, and will continue in batches over ten weeks.
• Angeion, the administration firm, confirmed initial emails notifying approved claimants of forthcoming checks.

Payout Calculation

• Claimants earn one “point” for each month their account was active from May 2007 to December 2022.
• Total validated claims-at least 17 million-divide the fund after legal and administrative costs, yielding an estimated median payout of about $30 per person.
• Eight named plaintiffs in the class action will receive $15,000 each for representing all affected users.

How to Receive Your Payment

Approved users will receive funds via their selected method-direct bank deposit, mailed gift card, or PayPal-according to their original claim instructions. Those who have not yet been notified are advised to monitor email for batch notifications over the coming weeks.

Settlement checks will continue through mid-November as Angeion processes remaining valid claims.