San Francisco, CA – August 21, 2025 – The distribution of a $725 million class-action settlement addressing Meta’s Facebook privacy violations has hit a snag due to recent lawsuits targeting claims administrators. The settlement, one of the largest of its kind, was intended to compensate approximately 19 million U.S. Facebook users for data privacy breaches, including the infamous Cambridge Analytica scandal. However, allegations of misconduct against the settlement’s claims administrator, Angeion Group, have raised concerns about the integrity of the payout process, potentially delaying payments to claimants.
On August 18, 2025, U.S. District Judge Vince Chhabria of the Northern District of California ordered Angeion to submit its revenue-sharing agreement with Blackhawk, the prepaid card provider handling 28% of the settlement’s distributions via Mastercard. The order follows lawsuits accusing Angeion and other claims administrators of engaging in a racketeering scheme with financial technology companies, raising questions about the transparency and fairness of the settlement process. These legal challenges have cast a shadow over the anticipated payouts, initially expected to begin later this month.
The $725 million settlement, finalized in December 2022, resolved claims that Facebook improperly shared user data with third parties, including Cambridge Analytica, which accessed the personal information of 87 million users without consent during the 2016 U.S. presidential election. The settlement covers U.S. Facebook users active between May 24, 2007, and December 22, 2022, with approximately 17.7 million valid claims filed by the August 25, 2023, deadline. Claimants were promised payments based on the duration of their Facebook usage, with an estimated average payout of $30 per user after administrative and legal fees.
However, the recent lawsuits against Angeion have prompted concerns from lead counsel, who flagged potential conflicts of interest in the administrator’s financial arrangements. Judge Chhabria’s in-camera review of the Blackhawk agreement aims to ensure that the distribution process remains equitable. “The court is taking these allegations seriously to protect the interests of the class members,” said a court spokesperson. The review could push the payout timeline into late 2025 or beyond, frustrating claimants who have already waited years for compensation.
The settlement has already faced scrutiny, with plaintiffs’ attorneys requesting $180 million in legal fees, a sum Judge Chhabria compared to “Nick Bosa money,” referencing the NFL star’s lucrative contract. After fees and administrative costs, the net settlement fund available to claimants is expected to be around $543.7 million. The large number of claims—described by Chhabria as “the largest number ever filed in a U.S. class action”—has already reduced individual payouts, and further delays could erode public trust in the process.
Meta, which rebranded from Facebook in 2021, has denied wrongdoing but agreed to the settlement to resolve the litigation. The company has since implemented a comprehensive privacy program, though critics argue that the $725 million penalty, while substantial, represents less than three days of Meta’s revenue. “This settlement is a step toward accountability, but these new lawsuits highlight the challenges of ensuring fair distribution,” said Adam Zimmerman, a class-action expert at Loyola Marymount University.
Claimants are advised to stay vigilant for updates from the official settlement website, facebookuserprivacysettlement.com, and to avoid potential scams, as all legitimate communications will come directly from Angeion. Those who filed claims can check their status by contacting the settlement administrator at 1650 Arch Street, Suite 2210, Philadelphia, PA 19103, or via email at administrative@angeiongroup.com.
As the court reviews the allegations against Angeion, the resolution of these lawsuits could set a precedent for how claims administrators are overseen in future class-action settlements. For now, millions of Facebook users await clarity on when—or if—they will receive their share of the historic settlement.