Millions of Americans use Cash App for quick, convenient payments, but for some residents in Washington state, their first experience came as an unexpected promotional text. Now, a $12.5 million class action settlement has been approved to address these unsolicited messages, offering eligible individuals compensation ranging from $88 to $147. Here’s a detailed look at the settlement, who qualifies, and how payments are being distributed.
Why Cash App Faced a Lawsuit
Unwanted Referral Text Messages
The lawsuit centered on Cash App’s “invite friends” feature, which allowed users to send automated promotional texts to contacts without their consent. Many recipients reported that these messages appeared personal but actually promoted the app, violating their privacy and expectations.
Washington’s Strict Privacy Laws
Washington state enforces strong rules against unsolicited commercial communications. The case, Bottoms v. Block, Inc., targeted Cash App’s parent company, Block, Inc. While the company denied wrongdoing, it agreed to settle to avoid prolonged litigation and legal costs.
Details of the Cash App Settlement
The settlement establishes a fund to compensate affected individuals after legal and administrative fees are deducted.
Settlement Overview
| Settlement Item | Details |
|---|---|
| Total Settlement Amount | $12.5 million |
| Covered Texts | Cash App referral / invite messages |
| Eligible Period | November 14, 2019 – August 7, 2025 |
| Estimated Payment | $88 to $147 |
| Final Approval | December 2025 |
The exact payment depends on the number of approved claims.
Who Was Eligible for a Payment
Eligibility was limited to ensure only those directly affected received compensation. You qualified if you:
- Received a Cash App referral or promotional text
- Lived in Washington at the time
- Did not provide consent for marketing messages
- Submitted a valid claim before the deadline
Individuals who used Cash App but did not receive texts were not eligible.
Claim Process and Important Deadlines
How the Claim Process Worked
Claimants completed either an online or mail-in form, confirming their details under penalty of perjury. Class members had the option to:
- Opt out: Retain the right to sue separately
- Object: Disagree with settlement terms
Key Dates to Know
| Event | Date |
|---|---|
| Claim Deadline | October 27, 2025 |
| Opt-Out / Objection Deadline | October 27, 2025 |
| Final Court Hearing | December 2, 2025 |
| Payments Sent | After final approval |
Once approved, the settlement becomes binding for all class members.
How Payments Are Being Sent
Payments are distributed by the settlement administrator based on the claim form selection. Available methods include:
- Direct deposit to a bank account
- Prepaid debit card
- Paper check by mail
If a payment fails, administrators may attempt re-delivery.
What This Settlement Means for Consumers
This case highlights the importance of digital privacy. Even seemingly personal referral texts count as marketing if they promote a business. Companies are required to obtain clear permission before sending such messages. For consumers, this reinforces rights to:
- Control how phone numbers are used
- Avoid unwanted marketing texts
- Hold companies accountable
Tips to Protect Yourself from Spam Texts
- Never click on unknown links in messages
- Reply “STOP” only if the sender is verified
- Register your number on the Do Not Call list
- Report spam texts to your carrier
- Keep records of repeated unwanted messages
Following these practices can help protect your rights and support future legal claims.
Frequently Asked Questions (FAQs)
1. Is this settlement related to IRS or government payments?
No. This is a private class action settlement, not a federal or IRS payment.
2. Can people outside Washington get paid?
No. Only Washington residents who met all eligibility criteria qualify.
3. When will payments arrive?
Payments are distributed after final court approval, expected after December 2025.
4. Why do payments vary from $88 to $147?
The amount depends on the total number of approved claims and settlement administration costs.
5. Do I need to pay taxes on the settlement?
Settlement payments may be taxable. Consult a tax professional for guidance.
6. Can I still sue Cash App separately?
Only if you opted out before the stated deadline.
Final Thoughts
The Cash App $12.5 million settlement is a significant reminder that consumer privacy matters. Unsolicited texts are more than an annoyance—they can violate state law. If you were eligible and filed a claim, monitor your payment carefully. For others, this settlement reinforces the importance of staying informed and protecting your digital rights.