Facebook Begins Payouts from $725 Million Privacy Settlement

Lead: Facebook has started distributing funds from its historic $725 million privacy settlement, with distributions kicking off on September 3 and expected to span 10 weeks. Where/When: U.S. users who held active accounts between May 24, 2007, and December 22, 2022, are eligible to receive payouts beginning September 3, 2025. Why/How: The settlement resolves claims that Facebook improperly shared private user data during the Cambridge Analytica scandal; payments are based on “allocation points” tied to months of account activity.

Nut Graf: Following two years of appeals, Meta’s $725 million settlement was officially sanctioned in May 2025. The distribution phase, overseen by court-appointed administrator Angeion, allocates roughly $540 million to validated claimants using a points system that assigns one point per month of Facebook use.

Distribution Details

  • Allocation points determine payment size: users earn one point per month of active Facebook usage from May 24, 2007, to December 22, 2022.
  • Minimum payment is $4.89; maximum payment is $38.36, with the average payout hovering around $29.43 according to a recent court filing.
  • Nearly 29 million claims were filed, with approximately 18 million validated as eligible for payouts.

Notification Process

Approved claimants receive an email from “Facebook User Privacy Settlement Administrator” several days before payment. Those uncertain about their claim status can contact [email protected] with their claim ID.

Significance and Outlook

This landmark settlement underscores growing scrutiny of tech giants’ privacy practices. While individual payments may be modest, the collective action sets a precedent for accountability. Meta, which denies wrongdoing, opted to settle to avoid further litigation costs and reputational risk.

What Comes Next

  • Payouts continue in waves over a 10-week period, concluding in mid-November 2025.
  • Claimants should monitor email for payment notifications and follow instructions to receive funds via PayPal, Venmo, Zelle, direct deposit, prepaid Mastercard, or check.

Facebook’s rollout of settlement payments marks the culmination of a seven-year legal saga stemming from the 2018 Cambridge Analytica revelations-offering users tangible redress and reinforcing the imperative of data privacy in the digital era.