There’s some big news for Cash App users. Following a class action lawsuit filed against the popular mobile payment app, the company is now set to pay a substantial settlement. The case involves unwanted spam text messages sent to numerous users under Cash App’s “Invite Friends” referral program. These messages upset many users, leading to legal action against the company.
Below is a detailed account of the case, the settlement amount, eligibility, and future course of action.
Case Background
The lawsuit was filed by a consumer named Kimberly Bottoms against Block Inc. (Cash App’s parent company). She alleged that the company sent promotional referral text messages without permission, violating state law.
The lawsuit was filed in the U.S. District Court, Western District of Washington. The plaintiff claimed that these messages violated the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act.
Although Block Inc. did not admit any wrongdoing, it agreed to settle the case to avoid legal costs and a lengthy process.
Settlement Highlights
Block Inc. has agreed to pay a total of $12.5 million. This amount will be distributed among all consumers who:
- after November 14, 2019
- lived in Washington State
- received a referral text message from Cash App
- and whose phone number falls within a Washington area code
It is believed that approximately 2 million phone numbers may be part of this class.
How much will be received?
After subtracting administrative expenses, attorneys’ fees, and the award to the class representative from the total settlement amount, eligible consumers are expected to receive payments ranging from approximately $88 to $147.
This amount represents 17%–29% of the potential penalty of up to $500 per person per violation, which is prescribed under Washington State law.
Payments will be made through the following methods:
- Check
- Venmo
- PayPal
- Or other electronic methods
Who is eligible?
Eligible for this settlement are all consumers who:
- Received a spam text message with a referral from Cash App
- We were located in Washington at the time of receiving the message.
- Had a phone number with a Washington area code
Notices will be sent to all of these consumers via email or postcard. Additionally, an online public notice will be issued for those who are difficult to identify.
How and when to file a claim?
The official website for filing a claim has not yet been launched. The company will release it soon. Interested consumers can subscribe to the relevant newsletters to receive all instructions once the website is live.
Once the website is open, consumers will need to:
- Enter their Notice ID (if received).
- Fill in their contact information.
- Choose a payment method.
- And submit a claim before the deadline.
Other Legal Cases Against Cash App
This isn’t the first time Cash App has been embroiled in legal action.
- In 2024, the CFPB fined Cash App $175 million for deficiencies in customer service and fraud protection.
- In 2023, the company settled a case related to a data breach for $15 million.
This new settlement is another step toward resolving Cash App’s referral text issue.
What should consumers do?
- Monitor your email and mailbox.
- Don’t miss any official announcements or notices.
- Stay away from suspicious links or fake websites.
- Only trust information from official sources.
The claims process will begin soon, and eligible consumers could receive payments of up to $147.
Conclusion
This $12.5 million class action settlement by Cash App is a relief for consumers who were sent referral text messages without their consent. Affected consumers could receive between $88 and $147 through this settlement.
If you received such a message and lived in Washington state, be sure to stay tuned for updates in the coming weeks. This opportunity could help you receive fair compensation. This case also demonstrates that even large companies must respect consumer privacy and consent.
FAQs
Q. Who is eligible for the Cash App spam text settlement?
A. Anyone who received a Cash App referral text message while living in Washington state during the eligible period.
Q. How much money will claimants receive?
A. Eligible users are expected to receive between $88 and $147, depending on the number of valid claims.
Q. Do I need proof to file a claim?
A. No. Eligibility will be verified using phone number records and other internal data.
Q. How will the payment be sent?
A. Payments may be sent by check, Venmo, PayPal, or other approved electronic methods.
Q. Is the claim website available yet?
A. Not yet. The official claim website will go live soon, and updates will be announced through notices and newsletters.