John Hughie
Millions of Cash App users could soon receive up to $147 each as part of a $12.5 million class action settlement involving allegations that the company violated consumer protection laws in Washington state.
If you’ve ever received an unsolicited referral message from Cash App’s “Invite Friends” program, this guide will help you find out if you’re eligible, how to file a claim, and what the next steps are.
Why Was the Lawsuit Filed?
The lawsuit was filed by plaintiff Kimberly Bottoms, who alleged that Cash App’s parent company, Block Inc., sent spam text messages without proper consent. The messages encouraged users to invite friends in exchange for cash bonuses, but allegedly violated the following:
- Washington Consumer Electronic Mail Act
- Washington Consumer Protection Act
The lawsuit was filed in the U.S. District Court for the Western District of Washington and claims that the messages were unlawful due to a lack of prior user consent.
Although Block Inc. denies any wrongdoing, the company has agreed to a settlement to avoid further litigation and legal expenses.
Settlement Overview: Key Details
The proposed settlement offers cash compensation to eligible recipients, depending on the number of claims submitted and approved.
Settlement Breakdown
| Detail | Information |
|---|---|
| Total Settlement Fund | $12.5 million |
| Eligible Text Period | November 14, 2019 – TBD (to be finalized soon) |
| Estimated Individual Payout | Between $88 and $147 |
| Type of Distribution | Pro rata, based on number of valid claims |
| Payment Options | Check, Venmo, or PayPal |
After attorney fees and administrative expenses are deducted, eligible class members will receive a portion of the remaining fund, estimated to be between 17% and 29% of the $500 allowed per violation under Washington law.
Who Is Eligible to File a Claim?
To receive a payout, you must meet all of the following eligibility criteria:
- Received a Cash App referral text message between November 14, 2019, and a future date to be confirmed
- Resided in Washington state at the time
- Had a Washington area code associated with the phone number that received the message
- Did not provide explicit consent to receive such messages
It’s estimated that nearly 2 million Washington phone numbers could be part of this settlement class.
How to File a Claim for the Cash App Settlement
The claim portal has not yet gone live, but once it does, here’s what you’ll need to do:
- Visit the official settlement website (to be announced).
- Submit your claim form online with the required information.
- Choose your preferred payment method – Check, Venmo, or PayPal.
- Submit the claim before the deadline (to be published on the settlement site).
If you believe you are eligible, stay informed by subscribing to updates on trusted class action tracking websites.
How Will You Be Notified?
If you’re part of the eligible class, expect to receive a notification through:
- Postcard mailers
- Digital notices via social media or consumer platforms
If you’ve changed your contact information, please update your details on your Cash App account or sign up for email alerts from legal consumer advocacy sites.
Past Legal Issues with Cash App and Block Inc.
This isn’t the first time Block Inc. or Cash App has faced legal scrutiny:
- In January 2024, Block was ordered to pay $175 million for failing to handle fraud complaints and poor customer service.
- In 2023, Cash App settled a $15 million class action over a data breach that compromised user data.
These repeated legal challenges raise questions about user privacy and platform responsibility, making this latest settlement even more significant.
Understanding “Pro Rata” Settlements
The term “pro rata” means that the payouts are divided evenly among all eligible claimants. The more people who file, the lower the individual payout, but everyone who qualifies will receive a portion of the $12.5 million fund.
This ensures fair distribution while keeping legal processes manageable and transparent.
The $12.5 million Cash App class action settlement represents a potential $147 windfall for affected users in Washington. If you’ve ever received an unsolicited referral text from Cash App, now is the time to review your eligibility and prepare to file your claim once the portal opens.
By understanding your rights and the filing process, you can ensure you don’t miss out on your rightful compensation. Stay alert, keep your contact details up to date, and check for announcements regarding the claim deadline and the official website.
FAQs
When will the settlement website go live?
The official claim portal is expected to launch soon. Also, keep an eye on legal tracking platforms and Cash App updates.
How much money will I receive?
You may receive between $88 and $147, depending on how many valid claims are submitted and approved.
Can I file if I no longer use Cash App?
Yes. As long as you meet the eligibility criteria (residency, area code, date range), you can still file your claim.
