In a major legal development, Cash App’s parent company, Block Inc., has agreed to a $12.5 million settlement in response to a lawsuit over unsolicited promotional messages.
This decision could benefit up to 2 million users, particularly Washington state residents, with potential payouts of up to $147 per person.
If you’ve ever received a Cash App referral text message, this settlement may apply to you. Here’s a complete breakdown of what you need to know.
Why Is Cash App Paying $12.5 Million?
The issue stems from a class action lawsuit filed by Kimberly Bottoms in November 2023, who claimed that Cash App’s “Invite Friends” campaign sent unsolicited promotional texts.
These texts allegedly violated the Washington Consumer Protection Act and Consumer Electronic Mail Act.
While Block Inc. denied any wrongdoing, it chose to settle the matter out of court by paying $12.5 million to resolve the claims and avoid a prolonged legal battle.
Who Is Eligible for the Cash App Settlement?
Eligibility is limited to Washington residents who received promotional text messages from Cash App’s referral program on or after November 14, 2019. The determination of eligibility will rely on phone records and message data.
Important details:
| Eligibility Criteria | Details |
|---|---|
| Residency | Washington state only |
| Date Range | After November 14, 2019 |
| Message Type | Unsolicited promotional “Invite Friends” text |
| Notification Method | Email or physical mail from Block Inc. |
| Claim Submission Deadline | TBD (To Be Determined) |
How Much Can You Receive?
The actual amount each person receives depends on how many people file a claim. Estimates suggest payouts will range from $88 to $147.
- If all 2 million eligible users file: Around $88 per person
- If fewer users file: Payouts may rise to $147 or more
How to Claim Your Settlement Payment
As of now, the claims process has not yet opened. But here’s what you should do:
- Watch for an Email or Letter: Block Inc. will notify eligible users.
- Submit a Valid Claim Form: Once the window opens.
- Respond Quickly: The sooner you act, the better your chances.
Keep checking your inbox and mailbox over the next few weeks to avoid missing the notice.
Cash App’s History of Legal Trouble
The current settlement is not the first legal hurdle for Block Inc.:
- $15 million paid in 2024 for a data misuse class action.
- $175 million penalty in 2024 from the Consumer Financial Protection Bureau due to security lapses and fraud risks.
These legal actions highlight growing scrutiny around how Cash App handles data, communication, and user protection.
If you’re a Cash App user in Washington who received unsolicited referral messages after November 14, 2019, you could be in line to receive up to $147 from this $12.5 million settlement.
With nearly 2 million people potentially eligible, this is one of the more substantial tech-related settlements in recent months.
Stay alert for official communication from Block Inc., and be ready to file your claim as soon as the process begins.
FAQs
Who qualifies for the Cash App $147 settlement?
Washington state residents who received unsolicited referral texts from Cash App’s “Invite Friends” program after November 14, 2019.
How will I know if I’m eligible?
Block Inc. will contact eligible users via email or traditional mail based on phone record data.
When can I file a claim for the payout?
The claim window is not yet open. Eligible users should watch for official notices from Block Inc. with detailed instructions.