$147 Payment for Everyone: In a recent update, Block Inc., the parent firm of Cash App, has agreed to a $12.5 million settlement in a class-action lawsuit concerning unauthorized promotional text messages. Filed in November 2023, the lawsuit alleged that Cash App sent referral-based marketing messages to users without obtaining prior consent — an act that breaches Washington State’s consumer protection regulations.
Under the terms of the agreement, individuals who received these unsolicited texts between November 14, 2019, and now may be entitled to monetary compensation. The case underscores increasing concerns about digital privacy and user consent, emphasizing the need for fintech companies to maintain ethical communication practices.
Block Inc. Settles Cash App Spam Text Lawsuit
The Cash App spam text lawsuit focuses on messages sent to Washington-based mobile numbers. These texts promoted the platform through its “Invite Friends” referral feature, which offered existing users bonuses for every new sign-up.
However, the problem began when recipients who were not Cash App users started receiving messages — even though they never gave permission to be contacted. The plaintiff, Kimberly Bottoms, alleged that Cash App’s referral mechanism automatically generated promotional texts to numbers stored in user contacts, breaching privacy laws.
The lawsuit was filed under:
- The Washington Consumer Protection Act (CPA)
- The Washington Consumer Electronic Mail Act (CEMA)
According to court filings, as many as two million Washington mobile numbers may have been targeted through these automated texts.
Although Block Inc. did not admit wrongdoing, it agreed to resolve the issue to avoid prolonged litigation and higher legal costs. The $12.5 million fund will now be distributed among verified claimants.
Settlement Payouts and Who Qualifies
Who Can File a Claim?
If you:
- Received one or more Cash App referral texts between November 14, 2019, and the settlement approval date,
- Owned a Washington state mobile number during that time, and
- Did not consent to receive such messages,
you may be eligible for a cash payment from the settlement fund.
Settlement Summary Table
| Settlement Summary | Details |
|---|---|
| Total Settlement Fund | $12.5 Million |
| Estimated Individual Payment | $88 – $147 (approx.) |
| Eligibility Period | Starting November 14, 2019 |
| Geographic Eligibility | Washington State Mobile Numbers |
| Relevant Laws | WA Consumer Protection & Electronic Mail Acts |
| Payout Methods | Check, PayPal, Venmo, or eBay Deposit |
How Are Payments Calculated?
Each eligible claimant can expect to receive between $88 and $147, depending on:
- The number of valid claims filed, and
- Administrative and legal expenses deducted from the total fund.
Washington law allows up to $500 in damages per unsolicited message, but the settlement amount was negotiated to distribute compensation fairly among all eligible participants.
Claims Notification and Distribution Process
How Will Claimants Be Notified?
Notifications will be sent via:
- Postal mail
- Digital ad campaigns targeting Washington residents
The official settlement website will list complete details about the claim process, eligibility verification, and payout options.
How to File a Claim
Filing a claim will be a simple online process:
- Visit the official settlement website (to be launched soon).
- Enter your contact details and phone number.
- Submit proof of receiving Cash App spam texts (if available).
- Choose your preferred payment method — check, PayPal, Venmo, or eBay deposit.
- Submit the claim before the official deadline (to be announced after preliminary court approval).
Once all claims are reviewed and approved, payments will be processed and distributed electronically or by mail.
Claim Process Overview
| Claim Information | Details |
|---|---|
| Notification Methods | Email, Mail, and Digital Campaigns |
| Claim Filing | Through Official Settlement Website |
| Payment Options | Check, PayPal, Venmo, or eBay Deposit |
| Distribution Timeline | After Court Approval & Deadline |
| Deadline to File Claim | To Be Announced (2025) |
Pattern of Legal Challenges for Block Inc.
This isn’t the first time Block Inc., the company behind Cash App, Square, and Afterpay, has faced legal scrutiny. The company has been part of multiple regulatory and legal challenges in recent years:
1. Data Breach Settlement
In a previous case, Block Inc. paid $15 million to settle a data breach lawsuit, offering users up to $2,500 in compensation. This breach involved sensitive customer data exposed due to system vulnerabilities.
2. CFPB Penalty
The Consumer Financial Protection Bureau (CFPB) fined Block Inc. $175 million for issues related to fraud protection and customer service failures. This included delays in resolving complaints and refund disputes.
3. Growing Regulatory Scrutiny
As fintech platforms like Cash App continue to expand, they face increasing pressure to strengthen privacy policies and improve user consent mechanisms. The spam text lawsuit further emphasizes the need for companies to prioritize transparent communication and explicit opt-in systems before sending marketing messages.
Why This Settlement Matters
The Cash App spam text settlement carries significance beyond the payout:
- It reinforces consumer privacy rights in the digital era.
- It sets a precedent for future class actions involving unwanted digital communication.
- It pressures fintech platforms to adopt ethical marketing practices.
Consumers today are more aware of data misuse and spam marketing, and lawsuits like this one help establish clear legal boundaries for tech companies that rely on viral referral growth models.
Final Thoughts
The $12.5 million Cash App spam text lawsuit settlement represents a critical moment for consumer privacy enforcement in fintech. As companies continue to leverage digital marketing to grow their user bases, they must ensure compliance with state and federal communication laws.
For affected users in Washington, this settlement provides not just financial compensation, but also a reminder of their digital rights. Moving forward, Cash App and similar platforms are expected to implement tighter consent-based marketing policies, ensuring users’ data and privacy remain respected.
Disclaimer: This article is for informational purposes only. Please refer to the official settlement website or court documents for verified claim instructions and deadlines.
(FAQ) $147 Payment for Everyone
What Is the Cash App Spam Text Lawsuit About?
It’s a class action lawsuit claiming that Cash App sent unsolicited referral messages to people in Washington state without consent.
Who Is Eligible for a Payment?
Anyone with a Washington-based phone number who received Cash App promotional texts between November 2019 and the present may qualify.
How Much Money Will I Receive?
Payouts are estimated between $88 and $147, depending on the total number of valid claims.
How Do I File a Claim?
Once the official settlement website is live, you can file a claim online by entering your details and selecting your preferred payment method.
When Will Payments Be Made?
Payments will be distributed after court approval and claim verification, likely sometime in mid to late 2025.
