Meta is already paying out millions of dollars to Facebook users in the United States with the proceeds of its landmark privacy settlement which amounts to up to $725 million.
The settlement resolves decades-old lawsuits claiming the social media platform had been sharing user information with third parties without user permission, a scandal that broke out in 2018 due to the Cambridge Analytica scandal.
All users who had a Facebook account between May 24, 2007, and December 22, 2022, and who submitted a claim by the deadline i.e., August 25, 2023 are eligible recipients. The ones that failed to file a claim will not receive payment.
The settlement administrator has started making payments via electronic transfer and mail. The amount that each one of them gets will differ.
Once legal fees, costs and other expenses are subtracted, the net settlement fund will be distributed to claimants according to their "allocation points."
One point is given each month that a user was active on Facebook at some time within the eligibility period.
Thus, the ultimate payment of a user depends on the overall number of valid claims made and the duration of the stay on the platform separately.
Meta has accepted the settlement, but the company denies that they did anything wrong or is liable. According to its court papers, it claimed the move was to escape the risks, burdens, costs and time wasted in protracted court battles.