A major class action settlement is moving forward against Cash App, the popular peer-to-peer payment platform owned by Block Inc.
The company has agreed to pay $12.5 million to resolve allegations that it sent unsolicited promotional text messages through its “Invite Friends” referral feature—potentially affecting nearly two million Washington residents.
What Sparked the Lawsuit
The case, Bottoms v. Block Inc., was filed in the U.S. District Court for the Western District of Washington by plaintiff Kimberly Bottoms, who alleges that Cash App violated the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act.
According to the complaint, Cash App sent thousands of marketing texts encouraging users to join the app without first obtaining recipients’ consent.
While Block Inc. denies wrongdoing, the company agreed to settle to avoid further litigation costs. The agreement provides direct payments to affected residents who received the unsolicited texts between November 14, 2019, and a to-be-determined end date in 2025.
Key Details of the $12.5 Million Settlement
| Category | Details |
|---|---|
| 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, 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 TBD 2025 |
| Estimated Affected | About 2 million phone numbers |
| Expected Payout | $88–$147 per person (estimated) |
| Payment Method | Check, Venmo, PayPal, or electronic transfer |
Who Qualifies for a Payment
Eligible individuals must meet both conditions:
- Residency: Live in Washington State (or have a Washington-based phone number).
- Receipt: Received an unsolicited Cash App referral text during the covered period.
Even residents who have since moved out of Washington may qualify if their number includes a Washington area code. The claims process is expected to open to nearly two million potential recipients once the settlement site goes live.
How to File a Claim
The official settlement website has not yet launched. Once available, it will host the online claim form and full instructions.
To file a claim, eligible individuals will need to:
- Provide basic contact and payment details.
- Verify that they received a Cash App “Invite Friends” referral text.
- Confirm Washington residency or an eligible phone number.
Payments will be issued by check, Venmo, PayPal, or direct deposit after claim verification.
Consumers can monitor updates through legal settlement trackers or state consumer protection newsletters.
Expected Payments and Timeline
After deducting legal fees, administrative costs, and service awards, each approved claimant is expected to receive between $88 and $147.
This payout represents about 17%–29% of the $500 statutory penalty allowed per violation under Washington law. Claimants will be notified by email, postcard, or online publication once the process officially begins.
Broader Legal Context
The Cash App case reflects a growing national trend in privacy and consumer protection lawsuits. Regulators and state attorneys general have increased enforcement against companies that misuse customer contact information or send unsolicited digital communications.
Under the Washington Commercial Electronic Mail Act, it’s illegal to send electronic messages for marketing without explicit consent. The law applies not only to email but also to text-based promotions and referral systems.
Financial technology firms like Cash App, Venmo, and Zelle have become focal points in privacy debates because they manage sensitive personal and financial data.
Other Legal Challenges Facing Cash App and Block Inc.
Cash App’s parent company, Block Inc., has faced several recent regulatory and legal challenges:
- January 2024: The Consumer Financial Protection Bureau (CFPB) fined Block $175 million for insufficient fraud protection and poor customer service.
- 2023: Cash App agreed to a $15 million settlement after a data breach exposed user information.
These cases underscore growing scrutiny of fintech companies over data privacy, customer protections, and transparency.
Why This Settlement Matters
For consumers, the $12.5 million settlement reinforces that digital consent laws carry real weight. Apps that rely on referral marketing must ensure users explicitly opt in—and have a clear way to opt out.
For companies, it’s a warning that even minor marketing missteps can lead to multimillion-dollar penalties. Automated referral systems that send messages without proper safeguards may now be treated as violations of state consumer law.
“This isn’t just about spam texts—it’s about accountability in how tech firms handle communication and consent,” said one Seattle-based consumer rights attorney familiar with the case.
What Happens Next
Washington residents who believe they received unsolicited Cash App referral messages should monitor official updates in the coming months. Once the settlement website launches, claimants will be able to file online before the announced deadline.
Consumers can confirm legitimate updates or contact information at the Washington Attorney General’s Office or the U.S. District Court for the Western District of Washington.
As technology platforms continue expanding referral and marketing programs, this case serves as a reminder that privacy compliance isn’t optional—it’s the cost of doing business in the digital era.
FAQs
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.
