In 2025, the parent company of Cash App, Block Inc., settled a lawsuit claiming that it was sending unsolicited text messages via its Invite Friends program with a 12.5 million class action settlement. In 2020, the case was filed by a Washington resident, Kimberly Bottoms, who alleged that Cash App had breached the state regulations of consumer spamming regulations and misleading marketing tactics. The company did not confess to any act, but had to settle so that the court case could not take too long. The settlement will compensate customers that received unapproved messages that promoted Cash App links between November 2019 and August 2025.
| Event | Date |
|---|---|
| Claim filing & opt-out deadline | October 27, 2025 |
| Final approval hearing | December 2, 2025 |
| Payout distribution begins | After December 2 |
The cash App payment is available to anyone who qualifies.
The payout can only be received by the Washington State residents who were unsolicitedly referred to Cash App through the given time. These documents usually look like cordial messages sent by friends to get clients to become the users of Cash App with the help of a referral code, promising them small amount of cash. The claimants will have to certify that they were residing in Washington at the time of receiving the message and that they did not expressly agree to receive the message. An estimated amount of between 88 and 147 was to be paid to each valid claimant depending on the number of people who claim compensation.
The primary Deadlines and Legal Consent.
The deadline to submit claims of receiving the $147 payout is October 27, 2025. One who wants to object or to opt out, should also have to meet this date. It will be approved on December 2, 2025, and payments will start as soon as the court gives the authorization. It will be distributed on a pro-rata basis that is, the less people who claim, the higher the amount payout will be received by an individual. Firstly, once the approval is made payments will be made by check or direct deposit.
How to File a Claim
The eligible users are required to fill an online claim form on the official settlement site. The form will involve the need to specify the phone number that received the Cash App referral text, verify that the person is a resident of Washington, and state that he/she was not previously asked to receive promotional messages. All the claims will be verified and subsequently processed once submitted. The whole settlement amount is composed of claimant compensation, administration costs and legal fees.
This agreement strengthens more accountability towards privacy and consent on digital platforms. Although Cash App says it did not violate the law, its case is strong as Washington State is well-established in consumer protection. The resolution has been perceived by a significant number of customers as a win on their privacy rights in a time and age where applications are becoming more dependent on automated referral marketing campaigns. The result may affect the way other fintech firms will treat user referrals and consent-based messages in future.
Frequently Asked Questions
1. What is the amount of money the eligible users will receive?
Depending on the number of claimants, qualified claimants should get between 88-147.
2. Who is eligible to claim the settlement on Cash App?
The only people that can qualify are Washington residents who receive unsolicited Cash App referral texts between November 2019 and August 2025.
3. When will payments be issued?
The payment will commence after December 2, 2025, on the day when the court will provide the final approval of the disbursement.
