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Facebook Initiates Distribution of $725 Million Settlement: Check if You're Eligible for Compensation

Meta, the parent firm of Facebook, finalized a $725 million settlement regarding data misuse in 2023. Now, users are starting to receive payouts from this agreement.

Facebook commences distribution of $725 million settlement funds: check if you're eligible for...
Facebook commences distribution of $725 million settlement funds: check if you're eligible for payment

Facebook Initiates Distribution of $725 Million Settlement: Check if You're Eligible for Compensation

In a significant development, the long-running legal battle between Facebook and its users over the misuse of facial recognition data has reached a new phase. The U.S. District Court has approved a $725 million settlement, which is set to distribute payments to eligible claimants.

The original plaintiff's case was merged with seven similar lawsuits into a single class action in 2018. This class action includes any individual in the United States who was an active Facebook user between May 24, 2007, and December 22, 2022. The settlement payout, equivalent to nearly 9% of all U.S. Facebook users, will benefit over 28 million claimants.

Facebook formally agreed to the payout on Dec. 23, 2022, and the settlement was officially approved by U.S. District Judge Vince Chhabria on October 10, 2023. Multiple objectors filed appeals, but ultimately dismissed their lawsuits. The two remaining plaintiffs continued to wage their appeal before the Ninth Circuit Court of Appeals, which was resolved in May of this year.

Eligible claimants do not need to prove that their data was obtained by a third party. Claimants should receive an email about three or four days before their payment is issued. Payments are already being distributed, and the process is expected to take about 10 weeks.

Plaintiffs' attorneys estimated that class members on average will receive roughly $30 each. However, the exact amount each individual will receive may vary based on factors such as the number of eligible claimants and the total cost of the settlement.

The settlement stems from the Cambridge Analytica debacle, where data firm Cambridge Analytica gained access to 87 million Facebook users' personal data in 2018. This incident raised serious concerns about privacy and data security, leading to extensive litigation and public scrutiny.

In the latest court hearing, plaintiffs' attorneys requested a whopping $180 million in legal fees. The court has yet to rule on this request.

As the payment distribution stage of the $725 million Facebook settlement moves forward, affected parties are encouraged to keep an eye on their emails for further instructions. For more information, visit the settlement's official website.

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