Cash App will pay $12.5 million to settle a lawsuit over unsolicited referral text messages sent to users in Washington state. Eligible recipients of spam texts may receive $88–$147 in compensation. Learn how to file a claim and key deadlines for 2025.
Cash App users in Washington state could soon receive cash payments as part of a $12.5 million settlement resolving a lawsuit over unsolicited promotional text messages.
The case alleges that Cash App’s referral system sent automated marketing texts to individuals who never consented to receive them—violating state consumer and privacy laws.
While parent company Block Inc. denies any wrongdoing, it agreed to the payout to avoid prolonged litigation and additional legal costs.
Cash App $12.5M Settlement 2025
Filed in November 2023, the class action lawsuit accused Cash App of violating the Washington Consumer Protection Act and the Consumer Electronic Mail Act.
The lawsuit targeted the “Invite Friends” feature, which allowed existing users to refer others by sending text messages offering cash bonuses. However, many of these messages were sent without prior authorization from recipients.
Privacy attorney Melissa Nguyen explains:
“This case underscores the growing legal risks of automated marketing. Even well-intentioned referral systems can violate privacy laws if consent isn’t clearly established.”
Cash App $12.5M Settlement 2025 Key Details
| Settlement Feature | Details |
|---|---|
| Total Settlement Amount | $12.5 million |
| Estimated Payout per Claim | $88–$147 |
| Eligibility Location | Washington State (WA area codes) |
| Eligibility Period | From November 14, 2019, onward |
| Payment Options | Check, Venmo, or PayPal |
| Status | Pending court approval in 2025 |
Who Qualifies for a Payment
Eligible claimants include individuals who:
- Received one or more Cash App referral texts without consent,
- Had a Washington-based mobile number, and
- Were not Cash App users at the time of receiving the message.
The affected group could include up to two million Washington residents, according to court filings.
Consumer rights advocate Henry Lopez noted:
“The settlement ensures fair compensation for privacy intrusions that often go unnoticed. Even a single unwanted text can violate consumer protection laws.”
How Much You Could Receive
| Scenario | Estimated Payment Range |
|---|---|
| Valid claim without proof | $88 – $120 |
| Valid claim with verification (proof or confirmation) | $121 – $147 |
Exact payouts will depend on the number of approved claims and administrative expenses. Payments will be made either by mailed check or digital transfer via PayPal or Venmo.
Claims Process and Key Deadlines
Class members will be contacted through email or mail, and a digital notice campaign will ensure outreach to unidentified eligible users.
Claim submission will be available through the official Cash App Settlement website once the court grants preliminary approval.
| Milestone | Expected Date (2025) |
|---|---|
| Preliminary Court Approval | August 2025 |
| Claim Form Availability | September 2025 |
| Claim Submission Deadline | To be announced post-approval |
| Payment Distribution | Within 90 days of final approval |
Digital law analyst Rachel Cortez added:
“The inclusion of digital claim filing and e-payment options makes this one of the most accessible fintech settlements to date.”
Pattern of Legal Challenges for Block Inc.
This is not the first time Block Inc., the parent company of Cash App, has faced legal scrutiny.
- In 2024, the company settled a $15 million data breach lawsuit, offering up to $2,500 per claimant.
- The Consumer Financial Protection Bureau (CFPB) also ordered Block to pay $175 million in civil penalties for fraud handling and customer service violations.
These recurring cases reflect growing pressure on fintech firms to enhance data security and user consent mechanisms.
Technology ethics researcher Dr. Alan Foster observed:
“Fintech companies are under a microscope. As digital finance grows, maintaining transparency and respecting user privacy isn’t optional—it’s essential.”
Cash App vs. Other Major Privacy Settlements
| Company / App | Settlement Amount | Primary Issue | Year |
|---|---|---|---|
| Cash App (Block Inc.) | $12.5 million | Unsolicited spam texts | 2025 |
| Poppi Soda | $8.9 million | Misleading health claims | 2025 |
| New England Patriots App | $2.16 million | Unlawful data sharing | 2025 |
| Meta (Facebook) | $725 million | Privacy & data misuse | 2023 |
Why This Matters
This case demonstrates how privacy violations in fintech apps can lead to major financial penalties. Consumers increasingly expect clear consent, limited data sharing, and opt-in marketing practices.
The Cash App $12.5 million settlement reinforces the legal expectation that companies must respect digital boundaries, even within referral or incentive programs.
For users, it’s a reminder to regularly review app permissions and marketing preferences.
FAQs
1. Who can claim money from the Cash App settlement?
Anyone with a Washington state phone number who received a Cash App referral text without consent between Nov. 14, 2019, and May 2025.
2. How much will I receive?
Payments are estimated between $88 and $147, depending on the number of claims filed.
3. Do I need proof of receiving the text?
No proof is required, but verified claims (with screenshots or records) may receive slightly higher payouts.
4. How will payments be made?
Payments will be distributed via check, PayPal, or Venmo.
5. When is the deadline to file?
The final claim submission deadline will be announced after the court grants preliminary approval, expected in late 2025.
6. Do I need to live in Washington to qualify?
Yes. Only phone numbers with Washington area codes are eligible for compensation.