Facebook will soon begin issuing payments to millions of users as part of a $725 million settlement over claims that the social media platform misused user data.
The settlement stems from several lawsuits brought on behalf of Facebook users that alleged the company made user data accessible to third-parties without their permission.
The litigation was brought in the aftermath of the Cambridge Analytica scandal, in which the since-shuttered marketing firm was accused of obtaining information on Facebook users to target voters in the 2016 presidential election.
People in the United States who used Facebook anytime during a 15-year period were eligible to opt in to the settlement back in 2023.
Meta, Facebook’s parent company, has denied any wrongdoing in the case, but agreed to a settlement to avoid going to trial, according to the settlement website.
Key Settlement Details
| Category | Details |
|---|---|
| Settlement Amount | $725 million |
| Eligibility Period | May 24, 2007 – Dec. 22, 2022 |
| Who Was Eligible? | All U.S.-based Facebook users active during the eligibility period |
| Claim Deadline | August 25, 2023 |
| Payment Timeline | Began late August 2025, distributed in waves over 75 days |
| Payout Calculation | Based on “allocation points” (months of Facebook use during eligibility) |
| Deductions | $120,000 to class representatives, $180+ million in attorneys’ fees, nearly $4 million in costs |
| Remaining Fund for Users | Around $541 million |
Who was eligible for a Facebook settlement payment?
Anyone in the United States who used Facebook between May 24, 2007, and Dec. 22, 2022, was eligible to be included in the settlement.
Eligible users needed to file a claim in the lawsuit by Aug. 25, 2023 to receive a payment. If a user is eligible and did not file by the deadline, they will not receive a payment.
When will Facebook settlement payments be issued?
The distribution of payments was scheduled to begin in late August, according to court filings.
As of Sept. 9, settlement payments had begun being distributed. People who have been approved for a settlement payment will receive an email notification three to four days before it is issued, according to the settlement website.
Because of the number of payments in the settlement, they will be issued in waves over a 75-day period, per court filings.
How much are the settlement payments?
While Facebook agreed to settle the lawsuit for $725 million, users who filed a claim will only see a small fraction of that total.
The judge in the case approved several initial payments from the pot: a total of $120,000 for the eight lead settlement class representatives, or plaintiffs, over $180 million in attorneys’ fees and nearly $4 million in other costs.
After those costs are paid, the roughly $541 million remaining settlement money will be distributed to the rest of the class members whose claims are approved.
The fund will be split evenly based on the number of “allocation points” an eligible claimant has, per court documents. “Allocation points” are determined by the number of months a user was on Facebook during the eligibility period.
Meaning, a person who used Facebook for two years, or 24 months, between May 24, 2007 and Dec. 22, 2022 will have 24 “allocation points.” The “allocation points” then determine the portion of the settlement payment a user will receive.
Why is Facebook paying a settlement?
Several lawsuits were brought against Facebook in the aftermath of the 2018 Cambridge Analytica scandal. They claimed Facebook shared user data without consent to third parties such as app developers, business partners, advertisers and data brokers, then failed to monitor use of the data.
The lawsuits were consolidated into one filing in 2018 and years of proceedings followed. In December 2022, Facebook’s parent company Meta and the plaintiffs agreed to settle the lawsuit.
Meta denies the allegations in the suit, but moved to settle the case to avoid “uncertainties, burden, expense, and delay” if the case continued, according to court documents.
FAQs
1. Who qualifies for the Facebook settlement?
Anyone in the U.S. who used Facebook between May 24, 2007, and December 22, 2022, and filed a claim by August 25, 2023.
2. How will I know if I’m getting a payment?
Approved users will receive an email notification 3–4 days before their settlement payment is sent.
3. How much money will each person get?
The amount depends on how many months you used Facebook during the eligibility period. More months = higher payout.
4. Why isn’t the full $725 million being paid to users?
Part of the settlement covers attorneys’ fees, legal costs, and payments to the lead plaintiffs. Around $541 million is left for users.
5. Why did Meta agree to the settlement if it denies wrongdoing?
Meta chose settlement to avoid a long, expensive trial and further public scrutiny over data privacy issues.
