Facebook Begins $725M Settlement Payments to Users

Payments Roll Out Today After Five-Year Privacy Suit

Facebook has started issuing payments as part of a $725 million class-action settlement over alleged misuse of user data, with approved claimants receiving emails and funds beginning September 12, 2025.

Nut Graf

The disbursement marks the culmination of a lawsuit consolidated in 2018-centering on unauthorized sharing of Facebook user information with third parties, including the Cambridge Analytica scandal-and represents one of the largest privacy settlements in U.S. history. Millions of eligible users will receive modest payouts based on how long they maintained active accounts.

Settlement Details

Total settlement fund: $725 million
Distribution period: 75 days, starting September 9, 2025
Administration: Managed by Angeion Group, with notifications sent 3-4 days before payment

Eligibility and Payment Amounts

Eligible period: May 24, 2007-December 22, 2022
Claim deadline: August 25, 2023
Minimum payout: $4.89 per claimant
Maximum payout: $38.36 for full-period users
Average estimated payout: ~$29.43

Allocations are determined by “points,” awarding one point per month of active Facebook use during the eligibility window. After deducting $180 million in attorneys’ fees, $4 million in administrative costs, and $120,000 to lead plaintiffs, approximately $541 million remains for distribution among approved claimants.

Why It Matters

This settlement highlights growing legal scrutiny of social media platforms’ data-handling practices. It follows a $5 billion FTC fine in 2019 over earlier privacy violations and ongoing global debates about user consent and surveillance capitalism.

Background

The suit consolidated multiple actions dating back to 2018 revelations that Cambridge Analytica harvested data from up to 87 million Facebook users without consent. Plaintiffs alleged Facebook shared personal information with advertisers, app developers, and data brokers without adequate oversight. Meta, while denying wrongdoing, opted to settle to avoid further litigation costs and uncertainties.

Settlement payments will continue in waves over the coming weeks. Approved users should monitor the email address associated with their claim for distribution updates.