Facebook has begun distributing payments to millions of users as part of a historic $725 million settlement over claims the platform misused personal data. The payments, which started rolling out in September 2025, represent the largest data privacy settlement ever approved in the United States.
The settlement stems from a class-action lawsuit filed after the Cambridge Analytica scandal, where up to 87 million Facebook users had their personal information harvested without consent, as per Newsweek. The data was then allegedly used for political advertising during the 2016 U.S. presidential election. Meta, Facebook’s parent company, agreed to the settlement in December 2022 but denied any wrongdoing.
Facebook users who were active on the platform between May 24, 2007, and December 22, 2022, and filed valid claims by the August 2023 deadline are now eligible to receive their share. According to court filings, eligible users who previously submitted claims for the Facebook settlement will receive an average payment of approximately $29.43, with the maximum payout reaching $38.36.
How payments are calculated and distributed
The payment amount for each user is determined through an “allocation points” system. Each claimant receives one point for every month their Facebook account was active during the eligible 15-year period. The total available funds are then divided proportionally based on all claimants’ combined allocation points.
From the original $725 million settlement, substantial amounts were first allocated for legal fees and administrative costs. Attorneys received $180 million, class representatives were awarded $120,000, and nearly $4 million went to administrative expenses. This left approximately $541 million for distribution among the approved claimants.
Out of 28 million claims submitted, about 17 million have been validated by the settlement administrator, Angeion Group. The company began issuing payments in September 2025 and will continue distributing funds over a 10-week period ending in mid-November. Eligible claimants receive email notifications 3-4 days before their payment is issued.
The payments were delayed for nearly two years due to appeals filed by objectors who argued the settlement amount was insufficient. The legal challenges to the Facebook payout timeline were finally resolved in May 2025, clearing the way for distributions to begin.
The Cambridge Analytica scandal that triggered this settlement involved a British consulting firm that obtained Facebook user data through a third-party app called “thisisyourdigitallife.” While only about 300,000 users agreed to take the psychological test, the app also collected data from their friends’ profiles without consent. This data was then used to create detailed psychological profiles for targeted political advertising.
The settlement underscores growing legal pressure on tech companies to protect user data and has sparked broader discussions about digital privacy rights. Facebook founder Mark Zuckerberg previously testified before Congress about the incident and implemented new restrictions on app developers’ access to user information. The case represents a significant milestone in holding social media platforms accountable for data protection practices.
Published: Sep 12, 2025 03:08 pm