$725 Million Facebook Privacy Settlement Lawsuit Payout Date, Payout Per Person, and Eligibility

In 2023, Meta (formerly Facebook) reached a historic $725 million settlement to resolve privacy violations in a class-action lawsuit involving millions of U.S. Facebook users. Despite the final court approval, payouts to users have been delayed due to several appeals, with new projections pointing to payouts possibly beginning in 2025. This article provides a thorough breakdown of the settlement, eligibility requirements, payout estimates, legal concerns, and more.

What You Need to Know About the Facebook Settlement

The $725 million settlement was reached after a class-action lawsuit was filed in 2018, alleging that Facebook had improperly shared user data with third-party applications and advertisers without users’ consent. After years of legal proceedings, the settlement was approved by the U.S. District Court for the Northern District of California in October 2023. However, an appeal process has caused delays in the distribution of settlement payments to eligible users. Here’s everything you need to know about the settlement, payout schedule, and eligibility.

Key Points:

• The settlement covers Facebook users who were active between May 24, 2007, and December 22, 2022.
• The expected payout date has been delayed, with payouts now anticipated to begin in 2025 due to pending appeals.
• Users who filed valid claims before the deadline will receive compensation, but the amount per user will depend on various factors.

Why Are Facebook Settlement Payments Delayed?

Appeals and Legal Challenges: A Setback for Settlement Distribution

After the settlement was approved by the California federal court in October 2023, two appeals were filed by objectors who argued that the settlement failed to adequately compensate users based on the full extent of the damages they could potentially claim. These objectors filed notices of appeal in November 2023, which resulted in a hold on the payout process.

• Key Legal Concerns:
  • Objectors argue the settlement amount is far below the potential statutory damages users could claim under the Stored Communications Act (SCA) and Video Privacy Protection Act (VPPA), which provide minimum recoveries of $1,000 and $2,500 per violation.
  • The objectors also believe that the settlement does not adequately address the claims of users who joined Facebook before 2010, as they had stronger privacy claims under pre-2010 user agreements.

The appeal process is set to be heard in 2025, and payouts will only proceed after the appeals are resolved.

Expert Insight: Legal experts emphasize that class-action settlements often face appeals, especially in high-profile cases like this one. Objectors generally aim to ensure that settlements fully reflect the damages, and appeals are a necessary part of this process. This delay, while frustrating, is not unusual in large-scale settlements.

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Facebook Settlement Eligibility: Who Will Get Paid?

Who Is Eligible for the Settlement?

The Facebook privacy settlement is available to users who were active on Facebook between May 24, 2007, and December 22, 2022, and filed a valid claim by the submission deadline.

Eligibility Criteria:

• Eligible Period: Facebook users who had accounts between May 24, 2007, and December 22, 2022.
• Claim Filing Deadline: Users needed to file claims by August 25, 2023. No late claims will be accepted.

Those who meet the eligibility requirements will receive a payout, but the amount they will receive depends on several factors, including the length of time they were a Facebook user during the eligible period.

Facebook Settlement Coverage: What Does It Include?

The settlement specifically addresses claims that Facebook allowed third-party applications and advertisers to access private user data without consent. The privacy violations occurred primarily before 2010, when Facebook changed its data-sharing policies.

Legal Reference:
The claims fall under the Stored Communications Act (SCA), which protects the privacy of user data stored by service providers like Facebook, and the Video Privacy Protection Act (VPPA), which regulates the sharing of personal data in video rental and related industries.

How Much Will You Receive from the Facebook Settlement?

Estimated Settlement Payment per User

The payout per user is expected to be relatively modest, with an estimated average payout of $30 per claimant. However, the exact amount will depend on the total number of valid claims filed and the length of time an individual was a Facebook user. Users who were on Facebook for a longer period of time may receive slightly higher amounts.

Breakdown of Payments:

• Estimated Average Payout: $30 per user (based on an average of 17 million claims).
• Payout Variability: Amounts will vary depending on how long a person was a Facebook user between May 24, 2007, and December 22, 2022.

It’s important to note that, despite the large $725 million settlement, the payout amounts are much lower because they must be divided among millions of eligible users.

Legal Insight: Under both the Stored Communications Act and Video Privacy Protection Act, eligible users could theoretically claim up to $1,000 and $2,500 per violation, respectively. However, the settlement amount is significantly lower, meaning users will receive a fraction of the potential damages they could claim in a full trial.

Why Did Some Object to the Facebook Settlement?

Legal Objections to the Settlement Amount

Several objectors to the settlement argue that the amount each eligible user will receive is far too low compared to the damages they would have been entitled to under federal law.

• Objectors’ Claims:
  • The settlement amount is less than 0.3% of the potential statutory damages users could recover under the Stored Communications Act and Video Privacy Protection Act.
  • The settlement fails to account for stronger claims made by users who joined Facebook before 2010, as their claims are more robust due to the lack of consent provisions in Facebook’s pre-2010 user agreements.
  • Objectors also contend that the attorneys’ fees, which amount to 25% of the total settlement, are disproportionately high for a case of this scale.

These concerns are central to the ongoing appeals, which are delaying the payout process. The objectors argue that the settlement unfairly diminishes the amount of money that could have been distributed to users who were harmed by Facebook’s data-sharing practices.

Expert Insight: Legal experts assert that the appeals process could result in a modification of the settlement, although it is unlikely that the final settlement amount will be increased. However, users who were harmed more significantly, particularly those who joined Facebook before 2010, may be entitled to a larger share of the settlement fund if the appeal is successful.

When Will Facebook Settlement Payments Be Distributed?

Delayed Payout Timeline

As mentioned, settlement payments are on hold until the appeals process is resolved. Initially, payments were expected to be distributed starting in early 2024, but with the appeal process still ongoing, payouts are now likely to begin in 2025 or later.

Updated Timeline:

• Original Payout Estimate: February/March 2024
• Current Status: Pending appeals resolution, with payments expected to begin no earlier than mid-2025.

Checking Your Claim Status

You can check the status of your claim by visiting the official settlement website. If you filed a valid claim, the website will provide updates on your eligibility and any changes to the payout timeline.

• Official Settlement Website: FacebookUserPrivacySettlement.com

How to Stay Updated on the Facebook Settlement

Official Sources for Updates

For the latest information on the settlement, including updates on the appeals process and payout distribution, visit the official settlement website regularly. This site will provide information about the timeline, claims process, and any changes due to legal challenges.

• Official Website for Updates: FacebookUserPrivacySettlement.com

Additionally, news outlets like Reuters, Kiplinger, and Forbes will continue to report on developments related to the settlement, offering expert commentary and updates.

Conclusion What You Should Know Moving Forward

While the Facebook privacy settlement provides a significant opportunity for affected users, the delays due to appeals have frustrated many. It’s important to understand that these legal processes take time and are a common part of large-scale settlements. As of now, payouts are expected to begin in 2025, though that timeline may change depending on the outcome of the appeals.

For now, users should ensure their claims are filed correctly (if they haven’t already), stay informed by checking the official settlement website, and be patient as the legal process unfolds. While the amounts may not be as high as some had hoped, this settlement still represents a significant resolution for millions of affected Facebook users.

Final Note: Keep in mind that the settlement’s outcome is contingent on ongoing legal processes, and all payouts will occur only once the appeals have been resolved. Ensure you stay updated to get the most accurate information regarding your eligibility and payment status.