Facebook User Privacy Settlement Payouts Begin
Settlement payments are being issued to eligible Facebook users impacted by the 2018 Cambridge Analytica scandal, with distributions occurring in waves over a 75-day period, according to court filings. While Facebook (now Meta) agreed to a $725 million settlement, individual payouts will be a fraction of that amount.
The judge approved initial payments totaling $120,000 for the eight lead plaintiffs, over $180 million in attorneys’ fees, and nearly $4 million in other costs. This leaves roughly $541 million for distribution to approved claimants.Payments will be allocated based on “allocation points,” determined by the number of months a user was on Facebook between May 24, 2007, and Dec. 22, 2022.For example, a user active for 24 months during that period will receive 24 allocation points. The more points a claimant has, the larger their share of the settlement.
The lawsuits stemmed from allegations that Facebook shared user data without consent with third parties – including app developers, advertisers, and data brokers – and failed to adequately monitor its use. the cases were consolidated in 2018, and a settlement was reached in December 2022.
Meta denies the allegations but settled to avoid the uncertainties of continued litigation, according to court documents.
