Key facts
- Facebook agreed to a $725 million settlement over privacy allegations.
- Second-round payments from the settlement are now being issued.
- Median payments in this round are around $6, down from $32.45 in the first round.
- Attorneys received approximately $181 million in fees and $3.7 million in costs.
- The settlement stems from accusations of sharing user data with third parties, including Cambridge Analytica.
Second-round payments from the $725 million Facebook privacy settlement are being distributed, but recipients are expressing disappointment as the amounts are significantly smaller than anticipated. The median payment in this latest distribution is around $6, a stark contrast to the $32.45 median from the first round of checks.
Users took to social media to voice their dissatisfaction, with some joking about how they would spend their meager earnings, such as buying a few slices of pizza or two slices of pizza from 7-Eleven. The second round of payments was approved to utilize approximately $100 million in uncashed benefits remaining in the fund.
Attorneys involved in the class-action lawsuit were awarded approximately $181 million before interest for their fees, along with $3.7 million for incurred costs. The lawsuit dates back several years, stemming from accusations that Facebook violated user privacy by sharing data with third parties, notably Cambridge Analytica, which supported President Donald Trump's 2016 campaign.