Cash App’s $12.5M Settlement: Cash App, the popular mobile payment service operated by Block Inc., recently agreed to a $12.5 million settlement to resolve a class-action lawsuit alleging that it violated Washington state law by sending unsolicited promotional text messages via its “Invite Friends” feature. This settlement addresses claims that Cash App allowed its users to send referral texts to contacts without obtaining prior consent from the recipients, which allegedly breached Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act.
Background of the Settlement
The lawsuit was initiated by Washington resident Kimberly Bottoms in November 2023, accusing Cash App of essentially sending spam texts to consumers who never agreed to receive such messages. The texts were sent through Cash App’s “Invite Friends” feature, which incentivized users to refer others to the platform via pre-filled messages. Many recipients found these unsolicited texts annoying and invasive.
While Block Inc., the parent company of Cash App, has denied any wrongdoing and maintains its compliance with federal and state laws, it chose to settle the case rather than prolong litigation. The settlement was preliminarily approved by U.S. District Judge Marsha J. Pechman, with a final fairness hearing scheduled in early December 2025.
Key Settlement Details
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Total Settlement Amount: $12.5 million agreed upon by Block Inc.
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Payment Range: Eligible Washington residents who received unsolicited referral texts may receive between $88 and $147 each, with the final amount depending on the number of claims filed.
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Eligibility Period: Individuals must have received a Cash App referral text between November 14, 2019, and August 7, 2025, while residing in Washington state.
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Claim Deadline: To receive compensation, eligible recipients had to submit claims by October 27, 2025.
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No Action Needed for Some: The Consumer Financial Protection Bureau (CFPB) noted that affected users may be compensated without needing to file claims, but those eligible were encouraged to participate to ensure their payout.
Who Qualifies for the Settlement?
To qualify, you need to meet these criteria:
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Be a resident of Washington state.
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Have received a Cash App referral text message within the specified time frame.
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Not have explicitly provided prior clear consent to receive such promotional texts.
Users who had already consented to receive messages are excluded, as the lawsuit focuses specifically on unsolicited communications.
How the Settlement Affects Cash App Users
If eligible, users could receive compensation directly proportional to the number of claims filed. The fewer claims made, the higher the payout per claimant, potentially reaching up to $147. Conversely, a large number of claims would reduce individual payouts closer to the minimum estimated $88.
This settlement serves as a reminder for mobile payment and tech companies like Cash App to carefully manage marketing practices, especially around unsolicited communications, to respect consumer privacy and comply with state laws.
Cash App’s Response to Allegations
Cash App, while settling the matter financially, has repeatedly stated that the issues raised reflect past practices and do not depict the current user experience. Block Inc. has asserted that it did not directly send messages or substantially assist in sending texts but provided a platform feature that users utilized voluntarily.
The company has pledged to maintain and improve industry standards to prevent similar issues in the future, emphasizing enhanced customer service and better regulatory compliance.
What This Means for Consumers
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Compensation for Unsolicited Messages: Eligible individuals could receive a cash payout as part of the settlement, providing some monetary redress for the nuisance caused by unsolicited marketing texts.
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Increased Consumer Protections: The case highlights the importance of consumer consent in digital communications and the need for companies to obtain explicit approvals before sending promotional content.
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Legal Precedent: This settlement adds to a growing number of cases tackling unsolicited digital marketing and reinforces the enforcement of state laws protecting consumer privacy.
Summary Table: Cash App $12.5M Settlement at a Glance
| Aspect | Details |
|---|---|
| Settlement Amount | $12.5 million |
| Payment per Eligible User | $88 to $147 |
| Eligibility Period | Nov 14, 2019 – Aug 7, 2025 |
| State Covered | Washington |
| Deadline to File Claim | October 27, 2025 |
| Lawsuit Basis | Unsolicited commercial text messages |
| Law(s) Allegedly Violated | Washington Commercial Electronic Mail Act & Consumer Protection Act |
| Company’s Position | No admission of wrongdoing; settlement to resolve claims |
FAQs About Cash App’s $12.5M Settlement
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Who is eligible for the Cash App settlement?
Washington state residents who received unsolicited Cash App referral texts between November 14, 2019, and August 7, 2025. -
How much money can I get from the settlement?
Eligible claimants may receive between $88 and $147 depending on the number of submitted claims. -
Do I need to take any action to get the settlement money?
Eligible users were required to submit claims by October 27, 2025. Some affected users may be compensated automatically through CFPB efforts, but filing a claim ensured receipt. -
Why did Cash App have to pay this settlement?
The settlement resolves allegations that Cash App violated Washington state law by sending unsolicited promotional text messages through its referral program. -
Has Cash App admitted to any wrongdoing?
No, Block Inc. settled the case without admitting wrongdoing but agreed to pay the settlement to resolve the dispute and avoid prolonged litigation.
Rev Ben Boland is a dedicated pastor, educator, and community mentor known for his compassionate approach to guiding individuals through life’s most meaningful moments. With years of experience in ministry, teaching, and public service, he brings a warm, thoughtful, and practical voice to the topics he writes about.