Facebook to Begin Payments in User Data Settlement

Menlo Park, California – Facebook plans to issue payments to millions of users due to a settlement over allegations of misusing user data. The settlement, amounting to $725 million, arises from multiple lawsuits claiming that Facebook shared user data with third parties without their permission.

This legal action gained momentum following the Cambridge Analytica scandal, where a marketing firm accessed Facebook users’ data to influence the 2016 presidential election. Users located in the United States who used Facebook during a 15-year period were eligible to participate in the settlement, provided they submitted a claim by August 25, 2023.

Meta, Facebook’s parent company, has denied any wrongdoing but opted for a settlement to avoid a lengthy trial process. Individuals who used Facebook from May 24, 2007, to December 22, 2022, could file claims. The distribution of settlement payments began in late August, with actual payments starting September 9, 2023.

Claimants will be notified via email three to four days before receiving their payment. Given the vast number of users involved, payments will be issued in waves over a 75-day period. While the settlement amount is substantial, it is important to note that individual payouts will be a fraction of the total.

From the settlement fund, $120,000 is allocated to the lead plaintiffs, with over $180 million designated for attorney fees. After these expenses, approximately $541 million will be available for distribution among class members. Each user’s payout will be determined by “allocation points,” which correspond to the duration of their Facebook usage during the eligibility timeframe.

In summary, users with a longer history on the platform will receive more substantial payments. This settlement follows years of legal battles after the 2018 revelations of how Facebook’s data practices impacted user privacy.