Facebook User Privacy Settlement Explained — Are You Eligible and How Much Will Users Get From the $725 Million Deal?

The long wait is finally over. Facebook finally began paying out its record $725 million privacy settlement, ending years of speculation over who qualifies, how much users will pocket, and when the cash would land.

Millions of Americans with accounts active between 2007 and 2022 are now seeing modest payouts, marking the largest privacy settlement in US history.

Why Facebook Paid Up

The deal stems from lawsuits accusing Facebook, now Meta, of mishandling user data and sharing it with third parties without consent.

At the centre of the scandal was Cambridge Analytica, the political consultancy that harvested tens of millions of profiles to sway elections and ignite global outrage.

Filed as a class-action lawsuit in 2023, the case consolidated multiple privacy complaints and was finalised in 2025. The deal resulted in a record $725 million payout, establishing it as the largest agreement of its kind in the United States.

Who Is Eligible for the Facebook User Privacy Settlement?

Eligibility for the Facebook privacy settlement is tied to account activity over a 15-year period. US residents who had active Facebook accounts between 24 May 2007 and 22 December 2022 were able to file claims.

However, the filing deadline closed in August 2023, meaning only those who submitted claims before that date are receiving compensation.

According to settlement administrators, more than 19 million valid claims were approved. This makes the payout one of the largest class-action distributions ever undertaken in the technology sector.

Individuals who did not submit claims on time, or those living outside the United States, are excluded.

How Much Will Users Get?

While the total settlement fund is valued at $725 million, not all of that money is being distributed directly to claimants.

Roughly $180 million has been allocated to attorneys' fees and legal expenses, alongside small sums for lead plaintiffs.

That leaves around $540 million for distribution to eligible Facebook users. Payouts are determined using a points system, where users receive one point for each month they maintained an active Facebook account during the eligibility window.

The more months a user had an account, the higher their payout.

On average, most users are expected to receive between $25 and $30. Individual amounts will vary, with long-term account holders receiving slightly more than those with fewer years of activity.

When and How Payments Are Sent

The first wave of payments began on 3 September 2025 and the process is expected to continue over a ten-week period. Claimants do not need to take any further action, as payments are being issued automatically.

Funds are being distributed through multiple methods, including PayPal, Venmo, Zelle, direct deposit, prepaid Mastercard, or paper cheque.

Eligible users will also receive an email notification prior to the deposit or issuance of the payment, offering confirmation of when and how the funds will arrive.

Wider Legal and Corporate Fallout

The Facebook user privacy settlement is part of a broader series of legal challenges facing Meta.

In a separate case, Mark Zuckerberg and other Meta executives reached an $8 billion settlement with shareholders in Delaware over their handling of the Cambridge Analytica scandal.

In addition, Meta is facing a whistleblower lawsuit filed by former WhatsApp security chief Attaullah Baig, who alleges that the company ignored major privacy and security flaws, including widespread account hacking. Meta has denied the allegations and is contesting the claims in court.

These cases underline the ongoing scrutiny of Meta's privacy practices and highlight the challenges faced by large technology firms in balancing user data protection with commercial interests.