In the US, Cash App has consistently been one of the most widely used fintech apps. But this time, the app is in the news not for its services but because of a major class-action lawsuit. Several users accused the company of sending promotional messages without permission through its “Invite Friends” feature. Now, the company has agreed to a $12.5 million settlement in the case.
Following this decision, millions of people are expected to receive payments ranging from approximately $88 to $147. Let’s look at the full case, who is eligible, and when the payments will be made.
How did the lawsuit begin?
The case was filed by Kimberly Bottoms, a resident of Washington State. She alleged that Cash App’s parent company, Block Inc., sent unsolicited “Invite Friends” referral messages to thousands of people without their consent.
According to the lawsuit:
- The company sent thousands of promotional referral texts.
- These messages were sent to people who had not given their permission.
- This violated both the Washington Commercial Electronic Mail Act and the Consumer Protection Act.
Although Cash App did not admit any wrongdoing, the company agreed to the settlement to avoid a lengthy legal process.
Key facts about the $12.5 million settlement
Here’s a simplified breakdown of the information:
| Detail | Information |
|---|---|
| Case Name | Cash App Spam Texts Class Action Lawsuit |
| Filed By | Kimberly Bottoms |
| Defendant | Block Inc. (Cash App’s parent company) |
| Court | U.S. District Court, Western District of Washington |
| Issue | Unsolicited referral text messages sent without consent |
| Laws Violated | Commercial Electronic Mail Act & Consumer Protection Act |
| Settlement Amount | $12.5 Million |
| Eligibility | Washington residents who received referral texts between Nov 14, 2019 and 2025 |
| Expected Payout | $88–$147 |
| Payment Method | Check, Venmo, PayPal, Direct Transfer |
Approximately 2 million phone numbers are believed to be affected by this case, making this a significant settlement.
Who is eligible for a payment?
You may be eligible if:
- You are a resident of Washington state, or
- Your phone number has a Washington area code, and
- You received an unsolicited text message from Cash App’s “Invite Friends” feature.
You may still be eligible even if you no longer live there, provided you had a WA area code number.
How and when to file a claim?
The official settlement website has not yet been launched. Once the process begins:
- An online form will be made available.
- You will need to fill in your contact information.
- You will need to confirm that you received such a message.
You will need to provide information regarding your WA residency or area code. Payments will be made via Venmo, PayPal, direct deposit, or check.
How much will I receive?
The payment amount will depend on the number of valid claims. Estimated amount:
- Minimum $88
- Maximum approximately $147
This amount will be distributed after deducting administration and attorneys’ fees.
This represents approximately 17–29% of the available amount of up to $500 per violation under Washington law.
How will people be notified?
Eligible individuals will be notified through these channels:
- Postcard
- Online advertising
Why is this case important for fintech companies?
This case is not just about payments; it has broader social and legal implications.
1. Transparency in Digital Marketing
- Companies will now be more cautious about sending promotional messages without permission.
2. Stricter Control over Data Privacy
- Sending unsolicited texts or emails can now be quite costly for companies.
3. Increased Scrutiny on the Fintech Sector
- Cash App has been involved in several controversies before.
Examples:
- In 2024, the CFPB imposed a $175 million fine.
- In 2023, there was a $15 million settlement after a data breach.
These incidents show that consumer protection laws have become stricter than ever.
Its Importance for Consumers
This settlement is a victory for consumers because:
- Companies have to pay a heavy price for violating privacy.
- Unsolicited messages have now become a legal risk.
- Consumer rights are now stronger than ever.
What happens next?
Anyone in Washington State who was affected by these messages will receive a notice in the coming months. Once the official website is launched, eligible individuals will be able to submit their claims online.
The claim deadline has not yet been announced, but it is expected to open in 2025.
Conclusion
This $12.5 million settlement by Cash App proves that the consumer voice is now more powerful than ever in the digital world.
Even simple unsolicited texts can turn into major legal action. If you are affected by this issue, keep an eye on your notifications. You may have a chance to receive a payment of up to $147.
FAQs
Q. Who is eligible for the Cash App spam texts settlement?
A. Anyone in Washington State who received unsolicited “Invite Friends” referral texts from Cash App between November 14, 2019 and 2025.
Q. How much money will I receive?
A. Eligible users are expected to receive between $88 and $147, depending on the number of valid claims.
Q. How will the payment be sent?
A. Payments will be issued by Check, Venmo, PayPal, or Direct Transfer.
Q. Is there an application form to submit a claim?
A. Yes. An online claim form will be available once the official settlement website goes live.
Q. Did Cash App admit wrongdoing?
A. No. Cash App (Block Inc.) did not admit guilt but agreed to the $12.5 million settlement to resolve the lawsuit.
