Facebook’s parent company, Meta, agreed to a historic $725 million settlement in response to a class action lawsuit claiming that it violated user privacy by sharing personal data with third parties, including the political consulting firm Cambridge Analytica. This settlement, which affects U.S. Facebook users active from May 24, 2007, to December 22, 2022, has led to one of the largest settlements in U.S. history, with over 17 million claims submitted before the August 25, 2023, deadline.
The Current Status of Payouts and Expected Timeline
Despite the settlement’s final approval on October 10, 2023, claimants are not expected to receive payments until early 2025, and possibly even later. This delay results from ongoing appeals filed by two objectors who argue that the settlement amount does not adequately compensate claimants, especially in light of the extensive data privacy breaches involved. The appeals process must conclude before any payments are distributed, and this process could extend well into 2025, pending the appeals court’s timeline.
Why the Appeals Are Delaying the Payout
The two objectors who filed appeals argue that the $725 million settlement equates to less than 0.3% of what the law could entitle them under statutes such as the Stored Communications Act (SCA). In their argument, they allege that the approved settlement amount is a fraction of the damages Facebook would potentially owe if the case went to trial. Specifically, they claim each eligible member might only receive around $2.87 if all eligible users filed claims, although the exact payout depends on how many claims were approved. The objectors further argued that pre-2010 users, whose data was allegedly shared without consent under different terms, should be entitled to a higher portion of the settlement fund.
Average Payout Expectations for Claimants
Currently, the settlement administrator estimates an average payout of around $30 per valid claim, although this amount could fluctuate depending on the number of accepted claims and any further adjustments due to ongoing legal proceedings. Claimants were allowed to choose their preferred payment method, including options like Zelle, prepaid Mastercard, Venmo, PayPal, or a physical check.
Important Dates for Claimants
Here are some of the crucial dates related to the Facebook privacy settlement:
- August 25, 2023: Deadline for claim submission.
- October 10, 2023: Final settlement approval granted.
- January-February 2025: Estimated payout distribution timeframe, contingent on the resolution of appeals.
What to Do if Your Claim Was Rejected
A notable 500,000 claims have already been rejected due to issues with user information. Claimants who received rejection notices have 10 days to appeal, which can be done through the official settlement website (facebookuserprivacysettlement.com). This website also allows claimants to check the status of their claims and provides FAQs to address common concerns about the settlement.
Why This Settlement Matters for Data Privacy
The Facebook class action lawsuit reflects broader issues of data privacy and corporate responsibility, setting a precedent for how tech companies handle user data and respond to breaches. The Cambridge Analytica scandal and subsequent fallout highlighted the lack of transparency in data sharing practices and raised questions about consent and accountability in the digital age. The case has underscored the need for stricter data privacy regulations, a movement that continues to grow as more users become aware of their rights concerning personal data.
Conclusion
For Facebook users awaiting their share of the $725 million settlement, the distribution process remains subject to legal proceedings, and payouts may not arrive until early 2025 or later. Claimants are encouraged to stay updated through the settlement’s official website for any changes to the payout timeline. The Facebook settlement serves as a landmark case in data privacy law, demonstrating both the complexities and the importance of holding companies accountable for their data practices.
Our dedicated team gathers information from all the reliable sources to make the law accessible and understandable for everyone. We provide the latest legal news stories from across the country, delivered straight to you.