Uphold HQ $820k Class Action Settlement for EFTA Violations

If you are a current or former user of Uphold HQ Inc. who reported unauthorized access to your account on or after February 25, 2021, you may be eligible to claim between $171 and $195 from a class action settlement.

Uphold HQ Inc. has agreed to pay $820,000 to settle a class action lawsuit for alleged violations of the Electronic Funds Transfer Act (EFTA) and negligence in protecting customer accounts from unauthorized access by cybercriminals.

Who Can Claim an Award?

To be eligible for an award, you must have:

• been a customer of Uphold HQ Inc.
• reported unauthorized access to your Uphold account(s)
• on or after February 25, 2021
• the report must have been made within seven days before or after an unauthorized withdrawal of assets from your account(s)

According to the official settlement website, the class period begins on February 25, 2021, which is consistent with the one-year statute of limitations for the EFTA. To demonstrate a link between the unauthorized access and unauthorized withdrawal, the report to Uphold of unauthorized access must have been within seven days of (before or after) an unauthorized withdrawal.

What Awards Can Class Members Claim?

Class members who timely submit a valid claim will receive an equal share of the $500,000 portion of the settlement fund, after any deductions authorized by the Court. Assuming all Settlement Class Members make claims, this amount will be between $171 and $195, depending on deductions from the fund authorized by the Court.

The settlement fund includes a payment of the statutory maximum damages of $500,000 for a class action under EFTA, and a separate $320,000 allotment for an award of attorney’s fees. Class counsel will request that administrative costs, service awards, and up to $43,000 in litigation costs be deducted from the $500,000 portion of the settlement fund.

How to Claim Your Award

To claim your award, you must submit a valid claim form by August 5, 2024. You can file a claim online by visiting the online claim form or by mailing a completed claim form to the following address:

Uphold Class Action Settlement

Claims Administrator

P.O. Box 25226

Santa Ana, CA 92799

Settlement Fund Breakdown

• $500,000 for statutory damages under EFTA
• $320,000 for attorney’s fees
• Administrative costs, service awards, and up to $43,000 in litigation costs will be deducted from the $500,000 portion of the settlement fund

Important Dates

• Deadline to File a Claim: 08/05/2024
• Final Approval Hearing: 10/04/2024

Why is There a Class Action Settlement?

The lawsuit alleges that Uphold HQ Inc. violated certain provisions of the EFTA and was negligent in protecting customer accounts from unauthorized access by cybercriminals. Uphold denies any wrongdoing but has agreed to settle the lawsuit to avoid the risks and uncertainties of continued litigation.

What Happens Next?

The Court will hold a Final Approval Hearing on October 4, 2024, to decide whether to approve the Settlement. If the Court approves the Settlement, payments will be issued after any appeals are resolved. Please be patient during this process.