Published:
November 07, 2024
- Personal Injury Lawsuits
If you were one of the millions of Facebook users eagerly awaiting your share of the $725 million privacy settlement, brace yourself for some disappointing news.
The payouts, expected to begin in the summer of 2024, have been delayed until 2025 or even later.
Read on to learn the reasons behind this frustrating delay and what it means for those who submitted claims.
To understand the significance of this litigation and the subsequent delays, let's rewind to 2018, when the Cambridge Analytica scandal rocked the social media world.
Cambridge Analytica acquired the personal data of up to 87 million Facebook users primarily through a personality quiz app called "thisisyourdigitallife" developed by Aleksandr Kogan.
Most users never consented to or knew about the app collecting their data.
The app collected the following information for Cambridge Analytica without the users’ consent:
Cambridge used the data to create detailed psychological profiles of users that the company exploited to target political advertisements.
The company later claimed it could use this data to predict and influence voter behavior.
These bombshell revelations led to lawsuits alleging that Facebook's parent company, Meta, had violated users' privacy by sharing their data with third parties.
Fast forward to December 2022, when Meta agreed to pay a staggering $725 million to settle these class action lawsuits while denying any wrongdoing.
So, who is eligible for a slice of this multi-million dollar settlement pie?
According to the terms of the agreement:
However, longtime Facebook users might be in line for a slightly larger payout.
On October 10, 2023, the court granted final approval to the settlement, which was an important step forward.
However, the celebration was short-lived as two objectors filed appeals, throwing a wrench into the payout process.
Under the settlement terms, the claims administrator can only distribute payments once the courts fully resolve these appeals.
So, what exactly are these appeals, and why are they causing such a significant delay?
In simple terms, the two objectors, represented by attorneys Kendrick Jan and John Pentz, filed challenges to the settlement's terms, criticizing the attorneys' fees as excessive and arguing that the settlement undervalues the claims of class members, awarding less than 0.3% of potential statutory damages.
The Court of Appeals must now carefully consider the merits of these arguments and rule on whether the appeals have any validity.
If the Court dismisses the appeals, the settlement can proceed, but there's a catch.
Even if the appeals fail, there's a possibility of legal proceedings that could further delay the distribution of settlement funds.
The timeline for resolving appeals can vary widely, and unfortunately, there's no set deadline for when the appellate court will reach its decision.
The appeal hearings are scheduled to begin in the first half of 2025 or later, which means claimants will see movement on the payouts at least then.
After the hearings conclude, the Court of Appeals will rule on the objections. Even if the court rejects the appeals, the objectors may further appeal to the Supreme Court. Only when there is a final determination can the settlement finally proceed, and the payout process can begin.
However, the courts could push payments back even further if the parties file further legal action.
You may feel frustrated about the payout delay if you're one of the 17 million+ claimants who submitted a valid claim.
Here are a few key points to keep in mind:
Although the delay is disappointing, remain patient and understand that the legal process must run its course.
The 725 million dollar settlement and subsequent payout delays are a stark reminder of the digital age's complex legal landscape surrounding data privacy.
While the prolonged wait for settlement payouts is undoubtedly frustrating for claimants, this case sets a significant precedent for the future of consumer privacy rights.
And even though the delays are disappointing, the Facebook settlement represents a meaningful step forward in the ongoing battle to protect user privacy and hold tech companies accountable for their data practices.
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