Suits Against Claims Administrators Throw Wrench Into Facebook’s $725M Privacy Settlement
Padua, Italy – August 20, 2025
The historic $725 million class-action settlement by Meta, Facebook’s parent company, intended to resolve claims of privacy violations tied to the Cambridge Analytica scandal, has hit a significant snag. Lawsuits filed against the settlement’s claims administrators have raised concerns about mismanagement, fraud, and delays in distributing funds to millions of affected U.S. Facebook users. These legal challenges, combined with ongoing appeals, threaten to further postpone payouts expected by early 2025, leaving claimants frustrated and sparking debates over the integrity of class-action settlement processes.
Background: The Cambridge Analytica Settlement
The $725 million settlement, finalized in October 2023 by U.S. District Judge Vince Chhabria, addressed allegations that Facebook improperly shared user data with third parties, including Cambridge Analytica, a political consulting firm linked to the 2016 Trump presidential campaign. The firm accessed data from up to 87 million users without consent, prompting a wave of lawsuits consolidated under In re: Facebook, Inc. Consumer Privacy User Profile Litigation. The settlement, the largest data-privacy recovery in U.S. history, covers U.S. Facebook users active between May 24, 2007, and December 22, 2022, with over 17 million valid claims submitted by the August 25, 2023, deadline.
Claimants are expected to receive approximately $30 each, calculated by assigning one point per month of active Facebook use during the class period, then dividing the net settlement fund ($725 million minus legal and administrative fees) by total points. However, legal fees of up to $181 million and administrative costs have reduced the payout pool, drawing criticism from some class members.
New Lawsuits Target Claims Administrators
Recent lawsuits against the settlement’s administrators, primarily Angeion Group, have thrown the payout process into disarray. Filed in early 2025, these suits allege mismanagement, fraudulent handling of claims, and failure to adequately verify submissions, complicating the distribution timeline.
- Mismanagement Claims: Plaintiffs argue that Angeion Group mishandled the unprecedented 28 million initial claims, with over 10 million rejected as fraudulent or duplicates. The lawsuits claim inefficiencies in processing led to delays and errors, leaving legitimate claimants in limbo. For instance, some users reported receiving conflicting notifications about their claim status, while others were denied without clear explanation.
- Fraud Allegations: The suits allege that administrators failed to implement robust anti-fraud measures, allowing bots and bad actors to flood the system with fake claims, which slowed validation. This has fueled skepticism about the integrity of the claims process, with some plaintiffs accusing administrators of negligence in safeguarding the settlement fund.
- Transparency Issues: Claimants have criticized a lack of communication, with the settlement website (facebookuserprivacysettlement.com) offering limited updates. One lawsuit demands greater transparency, including detailed breakdowns of rejected claims and administrative costs.
These lawsuits, filed in the Northern District of California, seek to hold administrators accountable and potentially reallocate funds to ensure fair payouts. They also request court oversight to reform the claims process, further delaying distributions already stalled by two appeals filed in November 2023.
Ongoing Appeals and Their Impact
Two objectors, Sarah Feldman and Jill Mahaney, appealed the settlement’s approval in 2023, arguing that the $725 million fund—equating to less than 0.3% of potential damages under laws like the Stored Communications Act—was inadequate given the scale of the privacy breaches. They also contested the $181 million attorney fee award as excessive. The Ninth Circuit upheld the settlement on February 13, 2025, but the new lawsuits against administrators add another layer of complexity.
The settlement became effective May 22, 2025, but the administrator lawsuits could push payouts beyond early 2025, with hearings potentially extending into mid-2025 or later. The settlement website notes that “additional proceedings” may further delay distributions.
Broader Implications and User Frustration
The legal wrangling has amplified frustration among claimants, many of whom expected payments sooner. Posts on X reflect growing discontent, with users calling the process “a mess” and questioning why administrative issues persist in such a high-profile case. One user wrote, “$725M and we’re still waiting? Sounds like the admins are dragging this out for their own gain.” This sentiment underscores broader concerns about class-action settlements, where large funds often lead to disputes over administration and legal fees.
The lawsuits also highlight systemic issues in managing massive class actions. With 17 million validated claims—the largest in U.S. history—the administrative burden is immense, but critics argue that firms like Angeion, paid millions in fees, should have anticipated and mitigated these challenges. The controversy could set a precedent for stricter oversight of claims administrators in future settlements.