Cash App class action claims Block failed to prevent data breach

Cash App data breach overview: 

• Who: A Texas woman has filed a class action lawsuit against Block Inc and Cash App.
• Why: The lawsuit alleges the companies were negligent, and allowed a data breach that saw consumers personal information leaked.
• Where: The Cash App data breach was filed in a California federal court.

Cash App and its parent company were negligent in their data security measures, leading to a 2021 data breach that released the information of 8.2 million Cash App Investing customers, a new class action lawsuit alleges. 

Plaintiff Amanda Gordon filed the class action lawsuit against Block Inc and Cash App Investing LLC Nov. 2 in a California federal court, alleging negligence and violations of consumer laws.

Cash App, which is owned by Block, is a mobile app that allows users to transfer money from one person to another. It also provides investing services which allows users to purchase stock and Bitcoin through its platform.

According to the lawsuit, due to Cash App and Block’s negligent security features the companies failed to properly secure and protect app users’ personal identifying information (PII). 

“Defendants’ negligence has resulted in the exploitation and release of Cash App users’ PII,” the lawsuit states.

Cash App and Block should have known the security systems were deficient, lawsuit alleges

The alleged failure to take reasonable steps to safeguard consumer information led to a December 2021 data breach that resulted in the release of PII of 8.2 million current and former Cash App Investing customers, the lawsuit states.

Customers’ full names and brokerage account numbers, the value and holdings of brokerage portfolios, and trading activity were all exposed, Gordon says.

Cash App and Block should have known that their security measures, protocols, screening procedures, and systems were deficient, the lawsuit alleges. 

“By and through Defendants’ negligence, they have caused financial losses and negative consequences and their negligence will continue to harm Class Members’ into the future,” the lawsuit alleges.

Gordon is looking to represent all current or former customers of the companies who had their PII compromised in the breach.

Gordon is suing for negligence, violation of California consumer laws, fraud, negligent misrepresentation, breach of contract, invasion of privacy and breach of fiduciary duty.

She is seeking certification of the class action, an order forcing Cash App to get a third-party security auditor and make security improvements, damages, fees, costs and a jury trial.

This is not the first class action to be filed against Block and Cash App after the data breach. In August, the pair were hit with a class action lawsuit alleging they failed to safeguard the information of their customers during a December 2021 data breach.

Was your data compromised in this Cash App breach? Let us know in the comments! 

The plaintiff is represented by Robert S. Green, James Robert Noblin and Emrah M. Sumer of Green & Noblin P.C., and William B. Federman and Joshua D. Wells of Federman & Sherwood. 

The Cash App class action lawsuit is Amanda Gordon v. Block Inc et al., Case No. 3:22-cv-06787-SK in the U.S. District Court for the Northern District of California. 

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