Taxpayers have three ways to claim one-time payments from $14.95 million filing settlement
A popular tax filing service, TaxAct, is set to pay $14.95 million to users due to claims of privacy violations. This settlement follows a class action lawsuit in which clients accused the company of failing to protect their privacy adequately.
According to the lawsuit, TaxAct allegedly violated federal and state privacy laws by sharing user information with third parties, including major companies like Meta and Google. Customers who utilized the do-it-yourself service to file a tax return and a 1040 form may be eligible for compensation from the settlement.
Settlement Details
While TaxAct denied any wrongdoing, the company agreed to the multi-million dollar settlement to resolve the issue. To qualify for a payment, clients must have used TaxAct between January 1, 2018, and December 31, 2022. Additionally, if your spouse filed a joint return on the site on your behalf during this period, you may also be eligible.
Most filers can expect payouts of approximately $18.65, but Californians may qualify for additional benefits due to the state’s privacy laws. In addition to the monetary payout, class members will receive a free tax service from TaxAct for the 2024 tax season.
Claims must be submitted by September 11, either online or via mail. However, individuals who have previously filed an arbitration demand with TaxAct are excluded from this settlement.
Data Breach Settlement for Acrisure
In a related matter, a data breach resulted in a settlement for Acrisure, a finance technology and insurance brokerage company. Clients sued the company after a 2022 data breach, alleging that it failed to implement proper cybersecurity measures to protect consumer data.
The lawsuit claimed that the breach compromised personal information, putting consumers at risk of financial harm. Although Acrisure denied any wrongdoing, the company opted for an undisclosed settlement to avoid future litigation.
Eligibility and Compensation
To be eligible for a payment from the Acrisure settlement, individuals must have received a notice indicating that their personal information was compromised due to the breach. Class members can claim up to $4,000 to cover financial losses related to the breach, such as identity theft or fraud. Additionally, claimants can receive $25 per hour for up to four hours of lost time due to the incident.
Moreover, affected individuals will be provided with 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 for the settlement scheduled for November 8.
Additional Settlements
In addition to these cases, another settlement is offering payments of up to $7,200 from a $3.25 million fund. Additionally, individuals may also qualify for compensation from an $850,000 dry shampoo settlement.
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