San Francisco, USA – Cash App's parent company, Block Inc., has agreed to a $12.5 million class-action settlement to resolve allegations of sending unsolicited referral text messages to residents of Washington state. The settlement, which was granted final approval by the court on March 27, 2025, aims to compensate individuals who received these messages without their consent.

The lawsuit, filed by Washington resident Kimberly Bottoms in November 2023, claimed that Block Inc. violated the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act through its "Invite Friends" referral program. The plaintiff alleged that Cash App's system sent out texts without proper user consent, raising concerns about privacy and data protection.

While Block Inc. has denied any wrongdoing, it agreed to the substantial settlement to avoid prolonged and costly litigation. This move is part of a broader trend of increased scrutiny on tech companies regarding consumer data practices and unsolicited communications.

Who is Eligible for a Payout?

To be eligible for a payment from this settlement, individuals must meet specific criteria:

1.  They must have been a resident of Washington state.
2.  They must have received a Cash App referral text message.
3.  They did not provide prior consent to receive that message.
4.  The messages must have been received between November 14, 2019, and a yet-to-be-determined end date for the class period.

The settlement class is estimated to include individuals associated with nearly 2 million phone numbers with Washington state area codes.

How Much Can Eligible Claimants Expect?

The $12.5 million settlement fund will cover attorneys' fees, administrative expenses, court-approved incentive awards for the class representative, and the pro-rata payments to eligible class members. Depending on the total number of valid claims submitted, individual payouts are estimated to range between $88 and $147. The more eligible individuals who submit claims, the lower the individual payment will be.

Claim Process and Important Dates

While the deadline for submitting claims for a separate Cash App security settlement (which involved data breaches and unauthorized transactions between August 2018 and August 2024, with a deadline of November 18, 2024) has passed, the claims portal for this specific referral text message settlement is expected to go live soon.

Eligible individuals will likely need to:

1.  Visit the official settlement website (to be announced).
2.  Submit their phone number and updated contact information.
3.  Select their preferred payment method (PayPal, Venmo, or check).

Most users are not expected to need to provide extensive documentation, as eligibility will primarily be verified using message records and phone numbers.

A Broader Context of Cash App's Legal Encounters

This $12.5 million settlement is not the first legal challenge Cash App, and its parent company Block Inc., has faced in recent times.

In 2023, Cash App agreed to a $15 million settlement to resolve a class-action lawsuit related to a data breach where an employee allegedly accessed user data without authorization.

In January 2024, the Consumer Financial Protection Bureau (CFPB) ordered Cash App to pay $175 million in refunds and penalties for allegedly failing to provide adequate customer service and robust fraud protection, leaving users vulnerable to scams and unauthorized transactions.

These multiple settlements underscore the increasing regulatory and consumer scrutiny faced by digital payment platforms concerning data privacy, security, and responsible marketing practices. The latest referral lawsuit settlement serves as a reminder to companies of the importance of obtaining explicit consent for marketing communications and adhering strictly to consumer protection laws.