Cash App, a wildly popular mobile payment platform, has transformed how millions in the U.S. send and receive money. But it recently made headlines for the wrong reasons—a $12.5 million class action settlement stemming from unsolicited referral messages sent to Washington State residents. If you’re one of the affected users, you could be eligible for a payout of up to $147. Here’s everything you need to know about the Cash App settlement, who qualifies, how to claim your share, and when payments might arrive.
Why Was Cash App Sued?
The controversy centers on Cash App’s “Invite Friends” feature, designed to encourage users to invite others to the app with rewards like bonuses. Sounds harmless, right? Not quite. Many Washington State residents received these referral messages without giving consent, sparking complaints about privacy violations.
- The issue: Unsolicited texts were sent to people who never signed up for or agreed to receive them.
- The lawsuit: Filed by Kimberly Bottoms in the U.S. District Court for the Western District of Washington, it accused Cash App and its parent company, Block Inc., of unethical and illegal practices.
- Outcome: A proposed $12.5 million settlement to compensate affected users and avoid a lengthy legal battle.
This case highlights the importance of consumer consent in the digital age.
Which Laws Were Violated?
The lawsuit alleges Cash App broke several key laws protecting consumer privacy:
- Telephone Consumer Protection Act (TCPA): Prohibits unsolicited calls or texts without permission.
- Washington Consumer Protection Act: Guards against unfair or deceptive business practices.
- Washington Consumer Electronic Mail Act: Bans sending commercial messages without consent.
These laws exist to safeguard your personal information and privacy. By sending unauthorized referral texts, Cash App crossed a legal line, prompting this significant settlement.
Cash App’s Response: Settling Without Admitting Fault
Block Inc. and Cash App didn’t admit wrongdoing but agreed to the $12.5 million settlement to sidestep prolonged litigation and protect their brand image. This is a common move for companies facing class action lawsuits—it resolves the issue without formally accepting blame.
The settlement funds will cover payments to eligible claimants, legal fees, and administrative costs, ensuring affected users receive compensation.
How Will the Money Be Distributed?
The $12.5 million won’t go entirely to claimants. After deducting attorney fees, administrative expenses, and court-approved awards, the remaining funds will be split among valid claimants using a pro rata distribution model. This means your payout depends on how many people file claims:
- 100,000 claimants: Approximately $125–$147 per person.
- 200,000 claimants: Around $88–$110 per person.
- 500,000 claimants: As low as $50 or less per person.
The fewer claims filed, the higher your potential payout. Acting quickly is key!
| Key Settlement Details | Information |
|---|---|
| Settlement Amount | $12.5 million |
| Eligible Region | Washington State |
| Payout Range | $50–$147 per claimant (pro rata) |
| Laws Violated | TCPA, Washington Consumer Protection Act, Washington Consumer Electronic Mail Act |
| Claim Filing Status | Awaiting court approval and website launch |
Who Is Eligible for the Cash App Settlement?
To qualify for a payout, you must meet specific criteria:
- Be a resident of Washington State.
- Have received an unsolicited Cash App referral message between November 14, 2019, and a yet-to-be-determined date.
- Your phone number must have a Washington area code (e.g., 206, 253, 360, 425, 509).
Court records suggest up to 2 million phone numbers could be eligible, but the actual number of claimants will likely be lower.
When and How Will Payments Be Made?
The settlement is pending final court approval, expected in early 2026. Once approved, an official settlement website will launch, allowing eligible users to file claims. Payments will be distributed via:
- Digital options: PayPal or Venmo.
- Direct deposit: To your bank account.
- Paper check: Mailed to your address.
Payments are likely to begin in mid-2026, though delays could occur due to the volume of claims or legal appeals. Check the settlement website or trusted legal news sources for updates.
What Should Affected Users Do?
If you believe you’re eligible, here’s how to prepare:
- Confirm eligibility: Ensure your phone number has a Washington area code and you received an unsolicited Cash App referral text.
- Save evidence: Keep screenshots or records of the messages, though they may not be required, as verification will rely on phone logs.
- File promptly: Once the claims portal opens, submit your claim quickly to avoid missing deadlines.
- Stay updated: Subscribe to email alerts from the settlement website or follow reliable sources for announcements.
Acting fast maximizes your chances of securing a higher payout.
Why This Settlement Matters
This $12.5 million Cash App settlement isn’t just about money—it’s a wake-up call for tech companies. In the digital age, user privacy and consent are non-negotiable. Sending unsolicited messages may seem minor, but it violates consumer rights and can lead to serious legal consequences.
This case also empowers consumers, showing that collective action can hold big companies accountable. It’s a reminder to stay vigilant about how your personal information is used.
Conclusion: Don’t Miss Your Chance
The $12.5 million Cash App settlement offers Washington State residents a chance to claim compensation for unwanted referral texts. While the payout—ranging from $50 to $147—depends on the number of claims, it’s a step toward justice for privacy violations. Keep an eye out for the official claims portal, and act swiftly to secure your share. This case underscores a bigger truth: your digital privacy matters, and companies must respect it.
FAQ: Cash App $12.5M Settlement
Why was the lawsuit filed against Cash App?
It was filed because Cash App sent unsolicited referral texts to Washington State residents, violating privacy laws.
How much will I receive from the settlement?
Eligible claimants may get $50–$147, depending on the total number of valid claims filed.
Who qualifies for the settlement?
Washington State residents with a Washington area code who received unsolicited Cash App referral texts between November 14, 2019, and a TBD date.
How will payments be made?
Via PayPal, Venmo, direct deposit, or paper check, based on your preference during the claim process.
When can I file a claim?
After the court grants final approval in early 2026, once the official settlement website launches.