Meta is sending US Facebook users bonus payments in $725m settlement

Facebook users who previously received compensation under Meta’s $725 million privacy settlement are set to receive additional payments after administrators found that funds remained available following the initial distribution.

Although the extra payments are tied to the settlement of a class-action lawsuit that accused Facebook of improperly sharing users’ personal data with third parties, including political consulting firm Cambridge Analytica. 

A New York Post report states that the political consulting firm had harvested data from as many as 87 million Facebook users without their consent, and therefore used it to build voter profiles for targeted political ads.

According to Angeion, the settlement administrator handling the payout said that approximately 28 million claims were filed in a class action in the United States.

Meanwhile, Meta agreed to the $725 million settlement in 2022 without admitting wrongdoing.

The settlement administrators have begun issuing supplementary payments to eligible claimants because fewer valid claims were approved than originally anticipated, leaving part of the settlement fund undistributed.

The original settlement covered Facebook users in the United States who maintained an account between May 24, 2007, and December 22, 2022, and submitted claims before the deadline set by the court.

Payment amounts were initially determined by factors including the length of time users maintained their Facebook accounts during the covered period. So, the latest round of payments will be sent through the same channels used in the original distribution, including direct deposits and digital payment platforms.

Also, the lawsuit stemmed from allegations that Facebook failed to adequately safeguard user information and allowed third parties access to personal data without sufficient oversight. 

The controversy gained international attention following disclosures about Cambridge Analytica’s use of Facebook user data.

Meta has since implemented a series of privacy and security measures aimed at strengthening data protection across its platforms, while continuing to deny any wrongdoing in relation to the settlement.

(New York Post)