Facebook Users Start Receiving Settlement Money

(KMDL-FM) After years of waiting, payments from the $725 million Facebook class action settlement have finally started rolling out, according to the company overseeing distribution.

Why Facebook Is Paying $725 Million

The settlement stems from claims that Facebook violated users’ privacy by sharing their data with third parties. Although it received final approval in 2023, payments were delayed due to objections and appeals.

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When Payments Started Rolling Out

Now, Angeion, the firm handling administration of the settlement, has confirmed that distribution began Wednesday, September 3. Originally, payments were expected to start in August.

So far, some of the 28 million people who filed claims have reported receiving emails that their claims were approved and that payments are on the way. If you haven’t been notified yet, don’t worry, payments will be sent out in waves over the next 10 weeks.

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Don’t expect a big payout from this settlement. After legal and administrative fees, the remaining funds are being divided among millions of approved claimants. Attorneys involved in the case will receive $181 million in fees.

How Settlement Payments Are Calculated

Payments will vary. Instead, they’re calculated using a point system: one point for every month a user had a Facebook account between May 2007 and December 2022. The more points you’ve earned, the larger your payout.

How Much Money Will Claimants Receive?

Because of the huge number of claimants, the average payment will be modest. Lawyers estimated in 2023 that the median amount would be about $30 per person.

In addition, the eight named plaintiffs who represented Facebook users in the case will each receive $15,000.