As Facebook prepares to shell out millions of dollars in a settlement to users, some Americans will not qualify for these payments.
Facebook is paying $725 million in a settlement for a class-action lawsuit in which the company was found to have shared user data without permission. Users have until Aug. 25 to claim part of the settlement.
The settlement class, however, does not include people who are “directors, officers, legal representatives, alleged co-conspirators, and agents” of Facebook owner Meta or its subsidiaries and affiliates, according to the official settlement webpage.
Any legal counsel that represented plaintiffs in the lawsuit, as well as their employees, are also excluded. Those who participated in the case—such as mediators, judges, and court staff—are not eligible for the claim, in addition to those who have voluntarily elected to opt out.
The deadline for requesting an opt out has passed.
Settlement class members who fail to submit a claim or do not opt out will relinquish certain rights, including the “right to start a lawsuit, continue a lawsuit, or be part of any other lawsuit against the Defendant (Facebook) and the Released Parties about the legal issues or factual allegations resolved by this Settlement.”
Eligibility, Settlement Amount
When filing a claim, individuals have to provide basic information like their full names, addresses, emails, and phone numbers. In addition, they will also have to submit their Facebook username. Individuals can file a claim online by visiting the official settlement webpage.Claim payouts can be received via Mastercard, PayPal, Venmo, Zelle, direct deposit to your bank account, or a paper check. People can also submit their claims via U.S. mail if they are postmarked by Aug. 25.
The $725 million will not be distributed in full to the settlement members. As a first step, charges like administrative costs and legal fees will be deducted to reach the net settlement amount.
Facebook Case, Current Claimants
The $725 million settlement is part of a case that sprang from the 2018 reports that Cambridge Analytica had accessed the personal Facebook information of about 87 million users by paying a Facebook app developer. The collected data was then used for targeting American voters during the 2016 election.Meta, Facebook’s parent company, denied the allegations in the suit, but still agreed on a settlement as it decided this course of action was in the best interest of the shareholders and the community, according to the company.
“Over the last three years we revamped our approach to privacy and implemented a comprehensive privacy program,” said spokesperson Dina El-Kassaby Luce. “We look forward to continuing to build services people love and trust with privacy at the forefront.”
Attorneys for the plaintiffs stated that nearly 15 million eligible Facebook members had submitted claims by mid-July, and others had filed over 40 objections.
Two Facebook users who objected insisted that the $725 million compensation was too low. Lawyers for the users say that the settlement should not be less than $5 billion.
The settlement is subject to the judge deciding that it is “fair, reasonable, adequate, and in the best interests of the settlement class members.
Over 19,000 people have opted out, meaning these individuals can now bring separate lawsuits against Facebook. The attorneys estimate that class members could each receive $35 on average.
