Thousands of Venmo users recently found themselves $156.09 richer thanks to a $27.5 million privacy settlement — but millions of eligible claimants missed out entirely. Here’s a deep dive into what happened, who got paid, why many didn’t, and the valuable lesson everyone should take away for the future.
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Why Was There a Venmo Settlement in 2025?
The roots of the Venmo settlement 2025 stem from a privacy lawsuit against Thomson Reuters, the media giant that operates the CLEAR data aggregation platform.
Journalist Rasheed Shabazz and former Oakland mayoral candidate Cat Brooks initiated the case, alleging that CLEAR was collecting and selling personal information — like addresses and DMV records — without user consent.
The lawsuit claimed:
“Because of CLEAR, Californians’ identities are up for sale without their knowledge, let alone consent.”
Although Thomson Reuters agreed to a $27.5 million settlement in August 2024, the company did not admit to any wrongdoing. Along with financial payouts, the company agreed to change some of CLEAR’s business practices.
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How Much Money Did Venmo Users Receive?
On April 22, 2025, eligible Californians who filed valid claims started receiving payments of $156.09 each.
Originally, with millions eligible, it was predicted the payouts could be much smaller — between $19 and $48 per person. However, the surprisingly low number of valid claims meant that those who did apply ended up with a significantly larger share.
Why Did Millions of Claims Get Blocked?
Although the payout was substantial for those who successfully filed, millions of claims were either blocked or never submitted. Here’s why:
- Bot Submissions: Over 1.6 million claims were flagged and blocked for being fake, submitted by bots trying to abuse the system.
- Low Participation: Even among eligible Californians, fewer than 3% actually submitted a valid claim.
- Lack of Awareness: Despite a court-ordered extension of the deadline and a push through social media ads and online campaigns, many simply didn’t know or didn’t act in time.
Because of these factors, only 125,000 to 150,000 claims were validated — far fewer than expected.
Fewer participants meant higher individual payouts — a rare outcome in class-action settlements.
What is a Class-Action Settlement?
For those unfamiliar, a class-action settlement allows a group of people — or a “class” — to pursue legal claims against a company together. Settlements often include:
- Financial compensation for those affected
- Denial of wrongdoing from the company
- Agreement to change certain business practices
Examples of class actions include cases involving false advertising, pollution, discrimination, and — as seen here — data privacy violations.
The Big Takeaway: Always Apply!
This case offers a critical lesson:
Always apply if you qualify for a class-action settlement.
Millions of Californians effectively left free money on the table by not submitting a claim — and those who did file earned a tidy $156.09 for their efforts.
With scams and misinformation rampant, it’s understandable that people are cautious. But missing out on legitimate settlements can cost you hundreds of dollars.
Final Thoughts on the Venmo Settlement 2025
The Venmo settlement 2025 is a clear example of how staying informed, acting quickly, and trusting legitimate settlement processes can pay off — literally. As more privacy and data-related cases emerge in the digital age, it’s smart to stay aware of your rights and opportunities for compensation.
Don’t let free money slip through your fingers next time.