Meta has begun the process of distributing settlement payments from its $725 million agreement related to the Cambridge Analytica scandal, following a court order issued on August 27. The settlement, which was reached in December 2022, is now in the final stages of distribution, with eligible users receiving compensation via methods such as PayPal, Venmo, and direct bank transfers. The class-action lawsuit stemmed from the 2018 revelation that 87 million Facebook users’ data had been accessed by Cambridge Analytica, leading to widespread scrutiny of the company’s data handling practices. While Meta did not admit wrongdoing, it has since implemented stricter controls on third-party data access and improved user transparency.
Any U.S. Facebook user who had an active account between May 24, 2007, and December 22, 2022, was eligible to file a claim, even if they had deleted the account. The deadline to file was August 25, 2023, and over 29 million claims were submitted. According to Meta’s response in a 2024 legal document, about 18 million of these claims were validated as of September 2023. Payments will be sent directly to the bank accounts provided on the claim forms or via PayPal, Venmo, Zelle, and a virtual prepaid Mastercard. Those with unsuccessful or expired payment methods will receive a ‘second chance email’ to update their information.
The settlement was initially announced in 2022 and marked the largest data privacy fine ever imposed on a U.S. company at the time. The case highlighted the broader issues surrounding digital privacy and corporate accountability, with regulators and lawmakers calling for stronger protections for user data. While Meta has emphasized its efforts to reform data policies, the delayed payment distribution has raised questions about the company’s financial management and commitment to users. As the payments begin to flow, affected users await the outcome, while the case remains a significant milestone in the ongoing debate over data ethics and corporate responsibility.