A major class action settlement is now in motion against Cash App, one of the most widely used mobile payment platforms in the U.S. The lawsuit, filed by Washington resident Kimberly Bottoms, accuses Block Inc., the parent company of Cash App, of sending unsolicited spam text messages through its “Invite Friends” referral program.
While the company continues to deny wrongdoing, it has agreed to pay $12.5 million to resolve the case and compensate affected users. The settlement is expected to provide direct payments to Washington residents who received these promotional texts between November 14, 2019, and a yet-to-be-finalized end date in 2025.
What Sparked the Lawsuit
The case, filed in the U.S. District Court for the Western District of Washington, alleges that Block Inc. violated two key state laws — the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act.
According to the complaint, the company sent thousands of promotional texts without proper consent, encouraging users to join Cash App via referral links. These texts allegedly violated state privacy and electronic communication regulations by targeting individuals who had never agreed to receive them.
Cash App chose to settle the lawsuit not as an admission of guilt but to avoid the high costs and uncertainties of extended litigation.
Key Details of the $12.5 Million Cash App Settlement
The settlement outlines several important points for consumers and potential claimants:
| Category | Details |
|---|---|
| Case Name | Cash App Spam Texts Class Action Lawsuit |
| Filed By | Kimberly Bottoms |
| Defendant | Block Inc. (Cash App parent company) |
| Court | U.S. District Court, Western District of Washington |
| Allegation | Sending unsolicited promotional text messages |
| Violations | Washington Commercial Electronic Mail Act & Consumer Protection Act |
| Settlement Amount | $12.5 million |
| Eligibility | Washington residents who received Cash App referral texts (Nov. 14, 2019 – TBD 2025) |
| Estimated Affected Individuals | Nearly 2 million phone numbers |
| Expected Payout | Between $88 and $147 per person |
| Payment Methods | Check, Venmo, PayPal, or electronic bank transfer |
Who Qualifies for a Payment
You may be eligible for compensation if:
- You live in Washington State, and
- You received an unsolicited referral text from Cash App’s “Invite Friends” feature during the eligibility period.
Importantly, the settlement also includes individuals whose phone numbers have Washington area codes, even if they have since moved out of the state. With nearly two million consumers expected to qualify, this settlement represents one of the largest state-specific spam text actions in recent years.
How to File a Claim (Step-by-Step Guide)
Although the official settlement website has not yet gone live, it will soon host claim forms and detailed filing instructions. Eligible users can sign up for legal settlement alerts to be notified once the claims process officially begins.
Once the website is active, claimants will need to:
- Provide contact and payment details (name, address, and preferred payment method).
- Verify that they received an unsolicited Cash App referral text.
- Confirm their Washington residency or provide proof of a Washington area code.
- Submit the form before the official filing deadline (to be announced).
After review and approval, payments will be distributed through check, Venmo, PayPal, or direct bank transfer.
How Much Money Claimants Can Expect
After subtracting administrative fees, attorney costs, and class representative awards, each approved claimant will likely receive between $88 and $147.
This payout represents roughly 17% to 29% of the $500 statutory damages permitted under the Washington Commercial Electronic Mail Act for each violation.
Eligible claimants will be notified by email, postcard, or online publication, ensuring that residents are informed when it’s time to submit their claims.
Why This Settlement Matters for Consumers
The Cash App settlement is part of a broader movement in U.S. law that aims to protect digital privacy and consumer consent in the age of online marketing. Regulators and courts are now holding tech and fintech companies accountable for aggressive marketing tactics and misuse of personal data.
For ordinary users, this case is more than just a payout — it’s a reminder of the importance of consent in a connected world. With millions relying on apps like Cash App, PayPal, and Venmo, the boundaries between convenience and privacy have become increasingly blurred.
The settlement reaffirms that companies must secure proper consent before sending promotional materials, or face financial and reputational consequences.
A Broader Trend: Growing Scrutiny of Tech and Finance Firms
This lawsuit is not an isolated event. Across the U.S., regulators are increasing oversight of electronic communication, marketing, and data security. Financial technology firms, in particular, face growing pressure to improve transparency and user protection.
Recent cases include:
- January 2024: The Consumer Financial Protection Bureau (CFPB) fined Block Inc. $175 million for inadequate fraud prevention and customer service.
- 2023: Cash App paid $15 million to settle a data breach lawsuit after hackers exposed sensitive user data, sparking criticism of the platform’s cybersecurity standards.
Together, these actions highlight a clear pattern: regulators and consumers are demanding higher accountability from companies handling personal and financial information.
Privacy, Consent, and Corporate Responsibility
This $12.5 million Cash App settlement reinforces a simple but powerful message — digital marketing must respect user privacy. As referral programs and automated campaigns become common, companies are learning that even minor consent oversights can trigger massive legal and financial consequences.
For consumers, it’s an opportunity to assert their rights and remind corporations that privacy isn’t optional — it’s the law.
For businesses, it’s a cautionary tale: every text, email, and notification sent without permission could become the basis for future litigation.
What Happens Next
Washington residents who believe they received unsolicited Cash App referral texts should monitor official announcements for claim details. Once the settlement website is live, users will have a limited period to file claims online.
Officials expect the claims window to open in early 2026, with payments distributed later that year after claim verification.
As technology companies continue to innovate in digital marketing, cases like this one underline a growing reality: consumer trust and corporate accountability go hand in hand.
FAQs: Cash App $12.5 Million Spam Text Settlement
1. Why is Cash App paying $12.5 million?
The company agreed to the settlement to resolve a lawsuit accusing it of sending unsolicited promotional texts through its referral program in Washington State.
2. Who qualifies for the Cash App settlement?
Anyone with a Washington address or area code who received an unsolicited Cash App referral text between November 14, 2019, and an upcoming end date in 2025.
3. How much can each person receive?
Each approved claimant will likely receive between $88 and $147, depending on how many valid claims are filed.
4. How can I file a claim?
Once the official settlement website launches, you’ll be able to submit your claim online by confirming your eligibility and providing payment details.
5. When will payments be distributed?
Payments are expected to be processed after the review and approval of claims, likely in late 2026. Claimants will receive funds via check, PayPal, Venmo, or direct deposit.