Facebook Users to Receive Settlement Checks in $725 Million Data Privacy Case

Millions of Facebook users in the US will receive settlement checks in a $725 million data privacy case. The payouts, handled by Angeion, will start in August 2025 and continue for 10 weeks. The settlement resolves allegations that Facebook allowed users' personal data to be shared with third parties, including Cambridge Analytica. Individual payouts are expected to be modest, with a median payment of around $30.

Millions of Facebook users in the U.S. are set to receive their long-awaited compensation in a $725 million data privacy case. The settlement, to be handled by Angeion, will commence in August 2025 and continue for 10 weeks [1].

The settlement comes after Meta, Facebook's parent company, agreed to pay $725 million to resolve allegations that it allowed users' personal data to be shared with third parties, including the controversial consulting firm Cambridge Analytica [1]. The case dates back to 2007 and affects users who had a Facebook account between 2007 and 2022 [1].

Angeion, the settlement administrator, reviewed around 28 million claims to confirm their legitimacy, ultimately approving at least 17 million of them [1]. Users who submitted claims by the August 2023 deadline and had their claims approved will receive payments via the method they chose when filing, either as a direct bank deposit, a mailed prepaid gift card, or a PayPal transfer [1].

Individual payouts are expected to be modest, with lawyers estimating a median payment of around $30 [1]. The exact amount will depend on the duration of the user's active Facebook account. This settlement is part of a larger narrative surrounding Meta’s handling of user data and the Cambridge Analytica scandal [1].

The case also highlights the broader implications for health tech companies. A recent verdict in a separate case involving Flo Health and Meta underscores the importance of data privacy and compliance in the industry [2]. The Flo Health case, which involved the use of SDKs to collect health data, resulted in a verdict that Meta violated California’s Invasion of Privacy Act [2].

The settlement and the Flo Health case serve as reminders for tech companies to prioritize user privacy and ensure compliance with data protection laws. For investors and financial professionals, these cases highlight the potential risks and costs associated with data breaches and privacy violations.

References:
[1] https://www.benzinga.com/markets/tech/25/08/47148479/us-facebook-users-to-receive-settlement-checks-in-725-million-data-privacy-case-check-if-you-are-eligible
[2] https://www.mmm-online.com/news/the-flo-health-meta-data-privacy-case-what-medical-marketers-can-learn/