Facebook Users Begin Receiving Privacy Settlement Payouts

Lead Millions of U.S. Facebook users began receiving payments today under a $725 million privacy settlement after judicial delays, with individual awards determined by account activity from May 2007 to December 2022.

Nut Graf The long-awaited distribution stems from allegations that Facebook improperly shared user data with third parties, including Cambridge Analytica. After appeals held up payouts for nearly two years, the settlement administrator commenced disbursements on September 3, aiming to complete distribution over the next ten weeks.

Payout Amounts and Schedule

  • Settlement fund: $725 million
  • Administrative costs & attorneys’ fees: ~$184 million
  • Net amount for claimants: ~$541 million
  • Distribution period: September 3 through mid-November, in staggered batches over ten weeks
  • Notification: Approved claimants receive an email 3-4 days before payment

Determining Individual Awards Each claimant earns one “allocation point” per month of active Facebook use between May 24, 2007, and December 22, 2022. The total fund is divided by cumulative points to calculate per-point value. Recent court filings reveal:

  • Maximum award (188 points): $38.36
  • Average award: $29.43
  • Minimum award (24 points): $4.89

Eligibility and Claim Process Users qualified if they held a U.S. Facebook account at any time during the class period and submitted a valid claim by the August 25, 2023 deadline. Claims filed late or ineligible accounts will not receive payouts.

What Recipients Should Do Subhead: Checking Your Payment Status

  • Watch for emails from “Facebook User Privacy Settlement Administrator” ([email protected]).
  • Subject line: “Settlement and Distribution Status Update.”
  • Payments issued via chosen method: check, prepaid card, PayPal, Venmo, Zelle, or direct deposit.

Subhead: Common Questions

  • Why settle? To avoid prolonged litigation over data-sharing allegations stemming from the 2018 Cambridge Analytica scandal.
  • Who benefits most? Attorneys receive the largest share (~$181 million), lead plaintiffs split $120,000, while millions of users share the balance.
  • Next steps? Monitor email and bank statements through mid-November for payment confirmation.

The settlement marks one of the largest privacy-related class-action distributions by membership, providing tangible relief-albeit modest-to millions of Facebook users impacted by data-handling practices nearly two decades old.