A major class action lawsuit has resulted in a $12.5 million Cash App settlement, offering eligible users payments between $88 and $147.
This legal action stems from unsolicited referral text messages sent to Washington state residents through Cash App’s “Invite Friends” promotion.
Although Cash App (owned by Block Inc.) denies any wrongdoing, it has agreed to the payout to avoid prolonged litigation.
If you’ve received promotional texts from Cash App in recent years, you may be entitled to a share of the settlement. Here’s everything you need to know.
Why Is Cash App Paying $12.5 Million?
The lawsuit began with a complaint by Kimberly Bottoms in the U.S. District Court for the Western District of Washington.
The claim alleges that Cash App violated Washington’s consumer protection laws by sending spam referral messages without the recipients’ consent.
These texts, part of a referral marketing campaign, lacked prior authorization — a direct violation of the Telephone Consumer Protection Act (TCPA) and state privacy laws.
Who Is Eligible for the Cash App Settlement?
To claim a payout, you must meet the following eligibility criteria:
- Received a promotional or referral text from Cash App
- Lived in Washington state at the time the message was sent
- Your phone number had a Washington area code
- You received the message between November 14, 2019, and a future TBD date
- You must have proof of message receipt (such as a screenshot or phone log)
An estimated 2 million individuals may qualify under these terms.
Cash App Settlement Breakdown
Here’s a snapshot of the key settlement details:
| Category | Details |
|---|---|
| Total Settlement Amount | $12.5 Million |
| Estimated Payout | $88 – $147 per person |
| Eligible Participants | ~2 Million (WA residents) |
| Distribution Type | Pro Rata (equal share per claim) |
| Claim Submission Status | Not yet open |
| Payment Methods | Check, PayPal, or Venmo |
How to File a Claim for the $147 Payout
The official claims website has not launched yet. However, once open, the process will include the following steps:
- Verify eligibility based on the criteria above
- Prepare documentation such as:
- Screenshots or logs of the unsolicited Cash App texts
- A valid Washington address or area code
- Select a payment method: check, PayPal, or Venmo
- Submit your claim through the designated portal before the deadline (TBD)
Keep an eye on consumer protection alerts or legal news portals for the official launch of the claim form.
How Will You Be Notified?
Eligible users will receive notification via:
- Email (if linked to their Cash App account)
- Postcard mailers
- Online public notices and advertisements
Ensure your contact information is up to date to avoid missing important updates.
Understanding Pro Rata Settlement Payments
This settlement is based on pro rata distribution, meaning the final payout depends on the number of valid claims filed. If fewer people apply, each claimant may receive close to the maximum $147. However, a large number of claims could reduce that amount.
The Cash App $12.5 million class action settlement could lead to payments of up to $147 per user. If you lived in Washington state and received unsolicited promotional texts from Cash App between November 2019 and the settlement’s final date, you may qualify.
Watch for the official claim website and act promptly once the process opens — this could be your chance to receive compensation for privacy violations.
FAQs
Who qualifies for the Cash App settlement payment?
Anyone who received an unsolicited promotional or referral text from Cash App while living in Washington state between November 2019 and a TBD date.
How will the payments be made?
Via your selected method — check, PayPal, or Venmo — during the claim submission.
When can I submit my claim?
The claims portal is not open yet. Monitor legal updates or consumer notices for the launch announcement.