Facebook settlement payments begin reaching users this month

Millions of Facebook users are starting to receive payments from a $725 million legal settlement, marking the resolution of one of the largest privacy-related class actions in US history.

The lawsuits stemmed from accusations that Facebook allowed third parties to access user data without permission, most notably in the Cambridge Analytica scandal that exposed the personal information of millions and targeted them in the 2016 presidential election.

To qualify for compensation, users needed to have had an active Facebook account between May 24, 2007, and Dec. 22, 2022, and had to have submitted a claim by the 2023 deadline. About 28 million people filed claims, of which 17 million have been validated so far.

Distribution of funds was delayed after several objectors filed appeals, but earlier this month payments began rolling out. Recipients are notified by email about four days before the funds arrive, and payments are expected to continue over the next 10 weeks.

According to the settlement website, compensation is calculated using a points system: each claimant earns one point for every month they had an active Facebook account during the 15-year period. After deducting attorneys’ fees, costs, and the lead plaintiffs’ $120,000 award, the remaining settlement pool is divided proportionally among claimants.

The median payment is expected to be around $30, though individual amounts will vary depending on account activity.

Facebook’s parent company, Meta, denies any wrongdoing but agreed to the settlement to avoid trial.

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