ACT FAST: Taxpayers have three ways to claim one-time payments from $14.95 million filing settlement – but you must act fast
A popular tax filing service is set to pay $14.95 million to users following claims of privacy violations. This settlement arises from a class action lawsuit in which clients accused the company of failing to adequately protect their privacy.
Allegations Against TaxAct
According to the lawsuit, TaxAct violated federal and state privacy laws by sharing user information with third parties, including Meta and Google. Customers who utilized the do-it-yourself service to file a tax return, specifically those who submitted a 1040 form, may be eligible for compensation from the settlement.
While TaxAct has denied any wrongdoing, it has agreed to the substantial settlement to resolve the claims.
Eligibility and Claims Process
To qualify for the settlement, clients must have used TaxAct between January 1, 2018, and December 31, 2022. Additionally, individuals whose spouses filed a joint return on the platform may also be eligible. Most filers can expect payouts of approximately $18.65, but California residents may receive additional benefits due to stricter state privacy laws.
Beyond the monetary compensation, class members will also receive a free tax service from TaxAct for the 2024 tax year. Claims must be filed by September 11, either online or via mail. However, individuals who have previously filed an arbitration demand with TaxAct are excluded from participating in this settlement.
Data Breach Settlement for Acrisure Clients
In a separate case, a finance technology and insurance brokerage company, Acrisure, has faced a similar situation due to a data breach that occurred in 2022. Clients filed a lawsuit, claiming that Acrisure failed to safeguard consumer data with adequate cybersecurity measures.
Impact of the Data Breach
The lawsuit asserts that the data breach compromised personal information, putting consumers at risk of financial harm. Acrisure denied any wrongdoing but agreed to an undisclosed settlement to avoid further litigation.
To qualify for compensation, individuals must have received notice that their personal information was compromised due to the breach. Class members can claim up to $4,000 to cover financial losses related to identity theft or fraud, as well as $25 per hour for up to four hours of lost time due to the breach.
Additional Benefits and Claim Deadlines
Claimants will also receive two years of credit monitoring and identity protection services. The deadline to file a claim in this case is October 15, with a final approval hearing scheduled for November 8.
Additionally, another settlement is offering payments of up to $7,200 from a $3.25 million fund, and individuals may want to check if they qualify for payments from an $850,000 dry shampoo settlement.
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