f you live in Washington state and received a Cash App referral text message, you may be eligible for a cash payment as part of a $12.5 million class action settlement. This lawsuit centers on allegations that Cash App’s parent company, Block Inc., violated consumer protection laws by sending unsolicited spam texts through its “Invite Friends” program.
Here’s a full breakdown of who’s affected, what the lawsuit is about, and how to prepare to file a claim once the official settlement process begins.
Table of Contents
Why Is Cash App Paying $12.5 Million?
The lawsuit, filed by Kimberly Bottoms in the U.S. District Court for the Western District of Washington, accuses Block Inc. of:
- Violating the Washington Consumer Electronic Mail Act, and
- Violating the Washington Consumer Protection Act
The issue? Spam-like referral text messages sent to consumers through Cash App’s “Invite Friends” program, allegedly without proper consent.
Block Inc. denies any wrongdoing, but agreed to the settlement to avoid further litigation and legal expenses.
Who Is Eligible?
You may be part of the settlement class if:
- You received a Cash App referral text message,
- You were living in Washington state, and
- Your phone number has a Washington area code
Eligibility Timeframe:
- Messages must have been received between November 14, 2019, and a to-be-determined cutoff date (likely in 2024 or 2025).
The settlement could affect up to 2 million phone numbers with Washington area codes.
How Much Money Could You Receive?
The $12.5 million settlement fund will be used to:
- Pay attorney fees and court costs
- Provide a service award to the class representative
- Cover administrative costs
- Distribute cash payments to eligible claimants
Estimated Individual Payout:
- Between $88 and $147 per person
- Based on a pro-rata share (your share depends on how many people file valid claims)
- Represents 17%–29% of the $500 statutory maximum for each violation under state law
Payments may be issued via:
- Check
- Electronic transfer (Venmo, PayPal, or similar)
How to File a Claim
The claim form and settlement website are not live yet, but here’s what you can do now:
Stay Informed:
- Sign up for notifications from legal settlement news sources
- Bookmark and monitor updates from class action tracking websites
- Watch for email or postcard notices if your number is in the class
Once the site is live, you’ll need to:
- Confirm eligibility
- Submit a valid claim form (online or by mail)
- Choose your preferred payment method
Other Legal Issues Facing Cash App
This isn’t the first time Cash App or Block Inc. has faced legal trouble:
| Year | Issue | Settlement/Outcome |
|---|---|---|
| 2023 | Data breach affecting users | $15 million settlement |
| 2024 | CFPB enforcement for fraud and service failures | $175 million penalty ordered |
| 2025 | Spam text referral lawsuit | $12.5 million settlement (current case) |
The company has faced ongoing scrutiny for how it handles user privacy, fraud protection, and digital communications.
What You Should Do Now
If you think you’re eligible:
- Watch your email and mailbox for official notices
- Sign up for updates from reliable legal class action trackers
- Save screenshots or records of any Cash App referral messages you received (if available)
FAQs:
Is the settlement final?
The settlement has been reached, but final approval from the court is still pending. Claims cannot be submitted until the court gives its approval.
Do I have to live in Washington now?
No. You qualify if you lived in Washington when you received the message and your phone number has a Washington area code.
How will I know if I qualify?
If your phone number is in the class, you’ll likely receive a postcard or email. You can also check the settlement site (once live) using your phone number.
