If you signed up with Labaton Keller Sucharow through its Lantern platform over the DailyPay app, there is no settlement date to wait for — and that is not a delay, it is how the case was built. The DailyPay claims are individual consumer arbitrations, not a class action, so there is no single fund, no court-approved payout schedule, and no universal check date.
Status: Mass arbitration, closed to new clients | Related state case: NY AG v. DailyPay, still at the motion-to-dismiss stage
Why There Is No DailyPay Payout Date
In a traditional class action, one judge approves one settlement fund, a claims administrator processes claims, and everyone in the class is paid at roughly the same time. That is why class action settlements have public deadlines and public payout dates.
The DailyPay claims do not work that way. DailyPay’s terms of service, like those of most cash advance and fintech apps, require users to bring disputes in individual arbitration and to waive class treatment. Firms respond by signing up thousands of users and filing their claims individually, in batches — a practice known as mass arbitration.
Each claim is then negotiated and resolved on its own track. One claimant can be paid months before another who signed up the same week, because the two claims sit in different batches at different stages. There is no master schedule, and no press release announcing a payout window, because arbitration is private by design.
That difference matters when you are trying to read the tea leaves. Nothing you can find in a court docket will tell you where your individual DailyPay claim stands. We explain the mechanics in more detail in our breakdown of mass arbitration versus mass torts and class actions.
What the DailyPay Claims Allege
The legal pressure on DailyPay escalated on April 15, 2025, when New York Attorney General Letitia James sued DailyPay and MoneyLion in New York State Supreme Court. The core allegation is that “earned wage access” paycheck advances are payday loans wearing a different name.
According to the Attorney General’s complaint:
- The fees translate into triple-digit APRs. DailyPay charges up to $1.99 for a transfer arriving in 24 to 48 hours and up to $3.99 for an instant transfer. The state’s most-cited example — a $20 advance carrying a $2.99 fee, repaid in seven days — works out to roughly a 750% annual percentage rate.
- New York users paid far above the state’s usury cap. The complaint puts the median APR paid by New Yorkers at 193.47% and the average at 398.59%. New York’s criminal usury cap is 25%.
- The advances were advertised as effectively free. The state alleges the presentation created a false impression that early access carried no real cost, while the fee for immediate delivery was the default path most workers took.
- Repeat borrowing was the business model. The Attorney General alleges the products push workers into taking a new advance to cover the shortfall created by the last one.
The arbitration claims filed by Labaton track that theory, adding federal lending-law claims — principally the Truth in Lending Act, which requires that the cost of credit be disclosed as a finance charge and an APR — plus state usury and consumer protection statutes.
Who Was Eligible to File
Eligibility for the DailyPay arbitration claims turned on state of residence, because the underlying usury and small-loan statutes are state law. The firm listed claimants in Alabama, Arkansas, Connecticut, the District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington and West Virginia.
The stated recovery range on the firm’s own case page is “up to $500 or more, depending on your state of residence,” and the representation is on contingency — the firm takes a percentage of whatever it recovers.
The Case Is Closed to New Clients
The Lantern by Labaton DailyPay case page lists the matter as closed to new clients. That is a signal about where the case is, not a sign that something went wrong: the firm has finished building its claimant pool and moved into investigating, negotiating and arbitrating the claims it already holds.
Practically, it means two things. If you never signed up, this particular route is no longer open to you. If you did sign up, your claim is in the pool being worked — and the firm’s Lantern portal is the only place your individual status is published.
Where the Public Court Case Stands
The Attorney General’s case is not your arbitration, but it shapes the leverage behind it. The timeline so far:
- April 2025 — DailyPay preemptively sued the New York Attorney General in federal court to head off the threatened enforcement action. Days later, the Attorney General filed suit in state court against DailyPay and MoneyLion, whose Instacash advance faces the same usury theory.
- September 2025 — U.S. District Judge John Koeltl rejected DailyPay’s attempt to keep the state’s case in federal court, and the complaint was remanded to New York State Supreme Court.
- January 2026 — DailyPay moved to dismiss, arguing its advances are not loans because it is paid by employers, is “an adjunct to the payroll system,” and does not assess a worker’s creditworthiness. It leaned on a Consumer Financial Protection Bureau advisory opinion concluding that many earned wage access products are not credit.
- April 2026 — Briefing closed in front of Justice Alexander Tisch, with DailyPay filing its reply on April 3 and also asking the court to convert the state’s expedited special proceeding into a full plenary action with discovery and a jury trial. No hearing date was set.
As of September 2026, no ruling on that motion has been reported publicly. If the Attorney General ultimately wins, the state is seeking restitution for affected New York workers and civil penalties — a separate recovery route from any private arbitration award.
A Federal Judge Already Called These Advances Loans
In April 2026, U.S. District Judge Lewis J. Liman denied a motion to dismiss in Freeman v. Bridge It, a case against the cash advance app Brigit, holding that earned wage access advances are loans subject to federal lending law. As the opinion framed it, the consumer “agrees to the payment of sums in the future ‘for the privilege of obtaining cash…today.'”
That decision does not bind the arbitrators handling DailyPay claims or Justice Tisch in the state case. It does undercut the central defense both companies are running — that a fee for early access to your own money is categorically not interest — and it is the kind of ruling that moves settlement math in private negotiations. We covered the parallel consumer case in our writeup of the Brigit cash advance settlement.
How to Check Your Own Payout Status
Because arbitration records are not public, there is no docket to search and no claims administrator lookup tool. Three things actually tell you something:
- The Lantern client portal. Log into the dashboard you were given when you signed the retainer. Claim stages generally move from submitted, to under review, to active or in negotiation, to resolved. A status that has not changed in months is normal in a batched arbitration — batches move in blocks, not continuously.
- Your email, including the spam folder. When an individual claim resolves, the recovery notice and the payment-method election typically arrive by email from the firm’s own domain. Filters catch these constantly. Search your mail for “Labaton” and “Lantern” rather than scrolling.
- Your contact details on file. A stale phone number, an old address, or a closed bank account is the most common reason a resolved claim sits unpaid. Update them in the portal before assuming the claim is stuck.
If the portal has genuinely not moved and you have had no contact for an extended stretch, the support channel inside your Lantern dashboard is the correct place to ask — not a public forum, and not a third-party site offering to “check your claim” for you. No legitimate service can look up a private arbitration claim on your behalf.
Frequently Asked Questions
Is there a DailyPay class action settlement?
No. There is no approved class action settlement fund for DailyPay users. The consumer claims Labaton Keller Sucharow filed are individual arbitrations, and the New York Attorney General’s case is a state enforcement action, not a class action.
When will DailyPay arbitration claimants be paid?
There is no single date. Individual arbitration claims resolve on their own timelines, in batches, and payouts follow each resolution rather than one court-approved distribution.
How much is a DailyPay arbitration claim worth?
The firm’s case page states recoveries of up to $500 or more depending on state of residence. Individual outcomes vary with how many advances a claimant took, the fees paid, and the lending statutes of that state.
Can I still sign up for the DailyPay claims?
No. The Lantern by Labaton DailyPay case page lists the matter as closed to new clients.
Why is my Lantern claim status not changing?
Mass arbitration claims are processed in batches, and a claim can sit at the same stage for months while its batch is negotiated. A static status is not by itself a sign that anything is wrong with your claim.
Case Details
| Company | DailyPay, Inc. |
| Product | Paycheck Advance / earned wage access |
| Consumer claims | Individual mass arbitration (Labaton Keller Sucharow, via Lantern) |
| Claim intake | Closed to new clients |
| Stated recovery | Up to $500 or more, depending on state of residence |
| State enforcement case | New York Attorney General v. DailyPay, N.Y. Supreme Court |
| Filed | April 15, 2025 |
| State case status | Motion to dismiss fully briefed April 2026; no ruling reported |
| Alleged APRs (NY) | Median 193.47%, average 398.59% |
Sources
- New York Attorney General, “Attorney General James Sues Payday Lending Companies for Exploiting Workers with Illegal Loans” (April 15, 2025)
- Payments Dive, “NY AG alleges two wage access providers made illegal loans”
- Payments Dive, “DailyPay case belongs in state court, judge rules”
- Payments Dive, “DailyPay pushes back against NY AG” (April 14, 2026)
- New Economy Project, “Federal Judge Deals Major Blow to Predatory Fintech” (April 2026)
- Lantern by Labaton, DailyPay case page and Lantern homepage
By Felix Levine | Published: September 8, 2026
Legal Disclaimer
This article is for informational purposes only and does not constitute legal advice. OpenClassActions.org is a consumer news site, not a law firm, and is not affiliated with Labaton Keller Sucharow, Lantern, or DailyPay. If you have a pending arbitration claim, direct questions about it to the firm representing you.