Meta Pays Out Small Settlements to Facebook Users After Privacy Lawsuit
Key Points
- Meta settled a privacy class‑action lawsuit valued at $725 million.
- Eligible users with Facebook accounts from 2007‑2022 received payouts.
- Typical payment amount was about $38, transferred via PayPal.
- The lawsuit centered on improper data access by Cambridge Analytica.
- First disbursements signal the settlement’s execution and ongoing privacy scrutiny.
Meta (formerly Facebook) has begun distributing payouts from a class‑action settlement that addressed privacy violations, including the Cambridge Analytica data breach. Eligible users received roughly $38 via PayPal, marking the first disbursements of a settlement that originally totaled $725 million.
Background of the Settlement
Meta, the company that operates Facebook, reached a class‑action settlement covering anyone who held a Facebook account between 2007 and 2022. The lawsuit alleged that the platform allowed third parties, most notably Cambridge Analytica, to improperly access user data. The settlement agreement was valued at $725 million and sought to resolve a range of privacy accusations against the social‑media giant.
Payouts Begin
Earlier this week, claimants began receiving their individual payments. The author of the source article reported that a payment of $38.36 was deposited directly into a PayPal account. Several other individuals, including some Verge staff members and their families, reported receiving similar amounts, with most payouts hovering around $38 and one instance noted as being slightly higher.
Eligibility and Claim Process
To qualify for a payment, users needed to have an active Facebook account at any point during the 2007‑2022 window. Claimants received an email confirming that their claim had been approved in the case titled “In re: Facebook, Inc. Consumer Privacy User Profile Litigation.” The email directed recipients to a payment platform where the settlement funds were transferred.
Public Reaction
While the individual payments are modest, the disbursement marks the first tangible outcome of a high‑profile privacy lawsuit that has been in the public eye for years. Recipients expressed a mix of satisfaction at finally receiving compensation and surprise at the relatively small amount per person.
Implications for Meta
The settlement and subsequent payouts underscore ongoing scrutiny of Meta’s data‑handling practices. Although the company has fulfilled its financial obligations under the agreement, the case highlights the broader regulatory and legal challenges facing large technology firms regarding user privacy.