A major class action settlement is in motion against Cash App, the widely used mobile payment platform. The case, filed by Washington resident Kimberly Bottoms, accuses Cash App’s parent company, Block Inc., of sending unsolicited spam text messages through its “Invite Friends” referral program. The company has agreed to pay $12.5 million to resolve the allegations.
What Sparked the Lawsuit
The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleges that Block Inc. violated both the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act.
Plaintiffs claim the company sent thousands of promotional texts encouraging users to join Cash App—without obtaining proper consent.
While Cash App denies wrongdoing, it agreed to settle to avoid the cost and uncertainty of continued litigation. The settlement provides direct compensation to affected Washington residents who received the messages between November 14, 2019, and a to-be-determined end date in 2025.
Key Details of the $12.5 Million Settlement
| Case Name | Cash App Spam Texts Class Action Lawsuit |
|---|---|
| Filed By | Kimberly Bottoms |
| Defendant | Block Inc., parent company of Cash App |
| Court | U.S. District Court for the Western District of Washington |
| Allegation | Sending unsolicited text messages via Cash App’s referral program |
| Violations | Washington Commercial Electronic Mail Act & Consumer Protection Act |
| Settlement Amount | $12.5 million |
| Eligibility | Washington residents who received referral texts between Nov. 14, 2019, and a TBD date |
| Estimated Affected | Nearly 2 million phone numbers |
| Expected Payout | Between $88 and $147 per person |
| Payment Method | Check, Venmo, PayPal, or electronic transfer |
Who Qualifies for a Payment
You may be eligible for a payment if you:
- Live in Washington State, and
- Received an unsolicited referral text from Cash App’s “Invite Friends” feature during the eligible period.
The settlement applies to individuals whose phone numbers include Washington area codes, even if they no longer reside in the state. Roughly two million consumers are expected to qualify once the claim process opens.
How to File a Claim
The official settlement website has not yet launched, but it will host all claim forms and detailed filing instructions once available. Eligible residents can subscribe to legal settlement newsletters to be notified when the claims process begins.
When the site goes live, claimants will need to:
- Provide contact and payment information.
- Verify that they received an unsolicited Cash App referral text.
- Confirm Washington residency or phone number.
Payments will be distributed after claims are reviewed and approved, with methods including check, Venmo, PayPal, or direct deposit.
Expected Payments and Deadlines
After deducting administrative fees, legal costs, and a service award for the class representative, each approved claimant will receive an estimated $88 to $147. The final amount will depend on the total number of valid claims submitted.
This 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.
Broader Legal Context
The Cash App settlement reflects a growing trend of legal action targeting tech and financial companies for violating privacy and consent laws.
Regulators across the U.S. are tightening oversight of electronic marketing and data practices, holding firms accountable for how they collect and share personal information.
Financial technology companies like Cash App, which manage sensitive user data, are under increasing pressure to improve transparency, security, and consumer protection.
Other Legal Challenges Facing Cash App
This is not the first time Cash App or its parent company Block Inc. has faced scrutiny.
- In January 2024, the Consumer Financial Protection Bureau (CFPB) fined the company $175 million for inadequate customer service and fraud protection.
- In 2023, Cash App agreed to a $15 million settlement after a data breach exposed user information, prompting claims of weak cybersecurity practices.
These cases highlight growing concerns about consumer safety and accountability within the financial technology sector.
Why This Settlement Matters
For consumers, this $12.5 million settlement is more than a financial payout—it’s a reminder of the importance of consent and digital privacy. As apps increasingly rely on automated marketing, ensuring users’ right to opt in—or opt out—has become a legal and ethical necessity.
For companies, it’s a cautionary tale: even seemingly harmless referral programs can lead to serious penalties if not properly managed. The Cash App settlement shows that state laws protecting privacy have real power—and enforcement.
What Comes Next
Washington residents who believe they received unsolicited Cash App referral texts should stay alert for claim notifications in the coming months. Once the settlement website launches, users will have the opportunity to submit claims online before the official deadline (to be announced).
As technology companies continue to push boundaries in marketing and data use, settlements like this remind consumers that privacy still matters—and that accountability in the digital age is non-negotiable.
FAQ
1. What is the Cash App spam texts class action settlement?
The settlement involves Cash App’s parent company, Block Inc., agreeing to pay $12.5 million to resolve claims that it sent unsolicited text messages through its referral program to consumers in Washington state.
2. Who filed the lawsuit and why?
The lawsuit was filed by Kimberly Bottoms, who alleged that Block violated the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act by sending unsolicited spam text messages.
3. Who is eligible for the settlement?
Consumers who received an unsolicited Cash App referral text message while residing in Washington state between November 14, 2019, and a date to be determined by the settlement administrator are eligible to claim.
4. How much will each eligible class member receive?
Each eligible claimant is expected to receive between $88 and $147, depending on the number of valid claims submitted. This amount is based on a pro-rata share of the $12.5 million settlement fund.
5. When can I file a claim for the settlement?
The settlement website for filing claims is not yet live, but you can subscribe to newsletters for updates. You’ll be notified when the claim process begins.
6. How will the payments be distributed?
Payments will be sent via check or electronic transfer, such as through Venmo or PayPal, to those who submit valid claims.
7. How will I know if I am eligible for the settlement?
Eligible class members will be notified by email and postcard. There will also be an online publication notice targeting potential class members who cannot be contacted through other means.
8. What is the deadline to file a claim?
The claim deadline will be announced once the settlement website is live. Make sure to stay updated by subscribing to notifications.
9. What does “pro rata payment” mean?
A “pro rata payment” means that the settlement amount will be divided fairly among all eligible class members based on the total number of valid claims. The more claims that are filed, the lower the individual payout.
10. Why is Cash App settling this case?
Cash App’s parent company, Block Inc., denies any wrongdoing but agreed to settle the case to avoid further litigation. The settlement allows them to resolve the claims and compensate affected consumers.
11. Has Cash App faced any other legal issues?
Yes, Cash App has faced other legal challenges. In January 2024, the Consumer Financial Protection Bureau (CFPB) ordered Cash App to pay $175 million for inadequate customer service and fraud protection. They also agreed to a $15 million settlement in 2023 to resolve a data breach issue.
12. How do I stay updated on the settlement?
You can subscribe to newsletters or regularly check the settlement website to stay informed about the latest updates regarding how to file a claim and important deadlines.
Yes I am wanting to claim against cash app because they closed my cash app account down and couldn’t give me a reason why they did so my mom gave me her card and I was using her because I couldn’t get another account with cash app they did the same thing to her that is how I got paid from work so there for I couldn’t get paid when I was supposed to and had to wait to get my weeks of earnings and it made all my bills late and some charges me late fee because there negative of close my account for no apparently reason not one but my mom’s too come on I did nothing wrong