Cash App’s parent company, Block Inc., has agreed to a $12.5 million class-action settlement to resolve allegations that it sent unsolicited referral text messages to Washington State residents without consent. The proposed settlement could result in individual payments ranging from approximately $88 to $147, depending on the number of valid claims filed.
The lawsuit, Bottoms v. Block Inc., centers on Cash App’s “Invite Friends” referral program, which allegedly triggered automated promotional text messages to people who never agreed to receive them. The case highlights growing legal scrutiny around fintech marketing practices and strict state laws governing electronic communications.
Why Cash App Agreed to a $12.5 Million Settlement
The lawsuit claims that Cash App violated Washington’s Consumer Electronic Mail Act (CEMA) and Consumer Protection Act by sending referral texts without prior permission. Washington law treats unsolicited commercial text messages as a serious violation, not a minor inconvenience.
According to the complaint, Cash App allegedly:
- Sent promotional referral messages without user consent
- Used automated systems to deliver the texts
- Failed to comply with Washington’s electronic communications laws
Block Inc. has denied all wrongdoing, but agreed to settle to avoid prolonged and costly litigation.
How Much Money Could Eligible Consumers Receive?
The total settlement fund of $12.5 million will cover:
- Payments to eligible claimants
- Settlement administration costs
- Legal fees and expenses
- A service award to the named plaintiff
Based on current estimates, individual payments are expected to fall between $88 and $147 per person. The final amount will depend on how many eligible people submit valid claims.
Key settlement details:
- Total settlement amount: $12.5 million
- Estimated affected phone numbers: Up to 2 million
- Estimated individual payout: $88–$147
- Payment methods: Check, PayPal, Venmo, or electronic transfer
As with all class-action cases, payments may decrease if a large number of claims are approved.
Who Is Eligible for the Cash App Settlement?
To qualify, individuals must meet both of the following conditions:
- Have a Washington State phone number, and
- Have received an unsolicited Cash App referral text message between November 14, 2019, and a court-approved cutoff date (still pending)
At this time, no official claims website is live. Any site claiming to accept applications now should be treated with caution.
How Will Eligible Individuals Be Notified?
If the settlement receives court approval, notice will be provided through multiple channels:
- Email notifications (where contact information is available)
- Postcard mailings to verified physical addresses
- Online notice campaigns for unreachable recipients
Once claims open, eligible consumers will be able to select their preferred payment method.
Why This Settlement Matters Beyond Washington
Although the case applies only to Washington State residents, its impact could extend nationwide. Cash App and Block Inc. have faced increased regulatory scrutiny in recent years, including:
- A $175 million CFPB fine in 2024 over alleged failures in fraud protection
- A $15 million settlement in 2023 related to a data breach involving its investment platform
The case sends a clear signal to fintech companies: aggressive growth strategies involving automated texts can trigger serious legal consequences.
Is the Cash App Claims Website Live Yet?
No. The settlement is still awaiting preliminary court approval. Large class-action settlements follow a structured process:
- Preliminary approval hearing
- Release of official settlement documents
- Launch of the claims website
- Distribution of notices
- Claims submission period
- Final approval hearing
- Payment distribution
The case is currently between steps one and two. Consumers are advised not to share personal information until an official, court-approved claims site is announced.
Frequently Asked Questions (FAQs)
What is the Cash App spam text settlement about?
It involves claims that Cash App sent unsolicited referral text messages to Washington residents, allegedly violating state law.
Who is eligible for payment?
Washington State phone number holders who received unwanted Cash App referral texts during the covered period.
How much money will individuals receive?
Eligible claimants may receive between $88 and $147, depending on how many claims are approved.