In 2025, Cash App, a popular mobile payment app, has agreed to a $12.5 million settlement to resolve a class action lawsuit over unsolicited text messages. This legal action claims that Cash App’s parent company, Block Inc., sent unwanted texts through its “Invite Friends” program, violating Washington state’s consumer protection laws. If you’re a Washington resident who received these texts, you could be eligible for a payment of up to $147. This article breaks down everything you need to know about the settlement, who qualifies, how to file a claim, and what to expect, all in simple language to help you navigate this process.
What Is the Cash App Spam Text Settlement?
Cash App, operated by Block Inc., faced a lawsuit filed by Kimberly Bottoms in November 2023. The lawsuit claimed that the company sent promotional text messages without users’ permission, breaking Washington’s Consumer Electronic Mail Act and Consumer Protection Act. These texts were part of Cash App’s “Invite Friends” referral program, which encouraged users to invite others to join the app for rewards. Many Washington residents received messages like, “Hey! I’ve been using Cash App to send money and spend using the Cash Card. Try it using my code and you’ll get $5,” without signing up for them.
Block Inc. agreed to pay $12.5 million to settle the case on June 30, 2025, without admitting any wrongdoing. The settlement aims to compensate affected users and avoid a lengthy court battle. It covers nearly 2 million phone numbers with Washington area codes, and eligible users could receive between $88 and $147, depending on how many people file claims. The settlement received preliminary approval on July 29, 2025, and a final approval hearing is scheduled for December 2, 2025.
Why This Settlement Matters
This settlement is a big deal because it highlights the importance of digital privacy. Companies like Cash App must get your permission before sending promotional messages. If they don’t, they could face legal consequences. For users, this means you have rights, and this settlement is a chance to claim compensation for unwanted texts. It also reminds us to stay aware of how companies use our personal information.
Who Can Claim the $147 Payment?
Not everyone who uses Cash App is eligible for this settlement. Here are the key requirements to qualify:
Eligibility Criteria
- Washington Residency: You must have been a resident of Washington state when you received the text.
- Time Frame: The text must have been received between November 14, 2019, and a date to be set by the settlement administrator in 2025.
- Unsolicited Texts: You did not give clear permission to receive the “Invite Friends” referral texts.
- Washington Phone Numbers: The text was sent to a phone number with a Washington area code (e.g., 206, 253, 360, 425, 509).
If you meet these conditions, you’re part of the settlement class, which includes about 1.975 million phone numbers. However, if you explicitly agreed to receive these texts, you won’t qualify.
Who Is Not Eligible?
- Non-Washington residents, even if they received a Cash App text.
- Users who consented to receive promotional messages.
- International users, including those in India, Canada, or the UK, as this settlement applies only to U.S. residents in Washington state.
How Much Will You Get?
The $12.5 million settlement fund will be divided among eligible claimants after subtracting legal fees, administrative costs, and a service award for the plaintiff, Kimberly Bottoms. Here’s how it works:
- Estimated Payout: Each eligible person who files a valid claim will receive between $88 and $147. This amount depends on how many people submit claims. If fewer people claim, you could get closer to $147. If more people claim, the amount per person may drop to around $88.
- Pro Rata System: The money is split evenly among all valid claimants, so the more claims filed, the smaller each payment.
- Payment Methods: You can choose to receive your payment via check, Venmo, or PayPal.
Breakdown of the Settlement Payout
| Aspect | Details |
|---|---|
| Total Settlement Amount | $12.5 million |
| Estimated Payout per Person | $88–$147, based on number of claims |
| Payment Methods | Check, Venmo, or PayPal |
| Deductions | Legal fees, administrative costs, and plaintiff’s service award |
| Claim Deadline | To be announced after settlement website launches (expected by August 2025) |
| Final Approval Hearing | December 2, 2025 |
How to File a Claim for the Cash App Settlement
The process to claim your share of the settlement is straightforward, but the official settlement website isn’t live yet. Here’s what you need to do to prepare:
Steps to File a Claim
- Check Eligibility: Confirm you received an unsolicited Cash App referral text while living in Washington state between November 14, 2019, and the cutoff date.
- Wait for the Website: The settlement website will launch within 30 days of the preliminary approval (by August 28, 2025). You can subscribe to newsletters from trusted sites like Top Class Actions or Claim Depot for updates.
- Submit a Claim Form: Once the website is live, fill out the online claim form with your name, phone number, and details about the text you received. You don’t need proof like screenshots, but having them can strengthen your claim.
- Choose Payment Method: Select whether you want a check or electronic transfer (Venmo or PayPal).
- Meet the Deadline: Submit your claim within 90 days of the website launch. The exact deadline will be announced later.
Tips to Avoid Scams
- Only use the official settlement website to file your claim.
- Be cautious of phishing emails or texts pretending to be from Cash App or the settlement administrator.
- Update your contact information on your Cash App account to ensure you receive notifications.
When Will You Get Paid?
Payments won’t be sent out until after the final approval hearing on December 2, 2025. If the court approves the settlement, claim processing will begin, and payments are expected to be distributed in mid-to-late 2025. You’ll receive an email or postcard confirming whether your claim was approved and details about your payment.
Timeline of Key Dates
- June 30, 2025: Settlement agreement filed in court.
- July 29, 2025: Preliminary approval granted by the court.
- By August 28, 2025: Settlement website expected to launch.
- December 2, 2025: Final approval hearing.
- Mid-to-Late 2025: Payments expected to be issued to approved claimants.
Why Did Cash App Settle?
Block Inc. didn’t admit to breaking any laws but chose to settle to avoid a long and costly court case. This decision helps protect the company’s reputation and provides quick relief to affected users. The lawsuit argued that Cash App’s referral program violated Washington’s laws by sending texts without permission, which is illegal under the state’s Consumer Electronic Mail Act and Consumer Protection Act. This case shows how seriously states take digital privacy and consumer rights.
Other Legal Issues for Cash App
This isn’t the first time Cash App has faced legal trouble:
- In January 2024, the Consumer Financial Protection Bureau (CFPB) ordered Cash App to pay $175 million for poor customer service and weak fraud protection.
- In 2023, Cash App settled a $15 million lawsuit over data breaches in 2022 and 2023 that affected 8.2 million users.
These cases highlight ongoing concerns about Cash App’s security and privacy practices, making this settlement a step toward accountability.
How to Protect Your Digital Privacy
This settlement is a reminder to stay vigilant about your digital rights. Here are some tips to keep your information safe:
- Use Two-Factor Authentication (2FA): Add an extra layer of security to your Cash App account.
- Create Strong Passwords: Use unique passwords and change them regularly.
- Monitor Your Account: Check for suspicious activity daily.
- Avoid Phishing Scams: Don’t click on links in unsolicited texts or emails claiming to be from Cash App.
- Update Your App: Keep your Cash App updated to the latest version for better security.
FAQs About the Cash App $12.5M Settlement
Who is eligible for the Cash App settlement?
You’re eligible if you were a Washington state resident who received an unsolicited Cash App referral text between November 14, 2019, and a date to be set in 2025, and you didn’t consent to receive it.
How much money will I get?
Eligible claimants can expect $88 to $147, depending on how many people file valid claims. The money comes from a $12.5 million fund, split after legal and administrative costs.
When can I file a claim?
The settlement website isn’t live yet but is expected to launch by August 28, 2025. You’ll have 90 days from the launch to submit a claim. Subscribe to newsletters for updates.
Do I need proof to file a claim?
Proof like screenshots or message records isn’t mandatory but can help verify your claim.
How will I get paid?
You can choose to receive your payment via check, Venmo, or PayPal. Payments are expected in mid-to-late 2025 after final court approval.
Can non-U.S. residents claim this settlement?
No, this settlement is only for U.S. residents in Washington state. International users, even if they received Cash App texts, are not eligible.
Is this settlement related to the Cash App data breach?
No, this settlement is specifically about unsolicited referral texts. A separate $15 million settlement in 2024 addressed data breaches from 2022 and 2023.
Today’s News: What’s Happening with the Settlement?
As of August 5, 2025, the Cash App settlement is trending due to its potential to benefit nearly 2 million Washington residents. The preliminary approval on July 29, 2025, has sparked interest, and people are eagerly awaiting the launch of the settlement website to file claims. Social media platforms like X are buzzing with discussions about digital privacy and consumer rights, with many users sharing tips on how to prepare for the claim process. However, some sources have mistakenly reported broader eligibility or mixed this up with the 2024 data breach settlement, so stick to trusted websites for accurate information.
Conclusion
The Cash App $12.5 million settlement is a significant step toward protecting consumer rights and holding companies accountable for unsolicited communications. If you’re a Washington resident who received unwanted referral texts from Cash App, you could claim up to $147 by filing a valid claim once the settlement website launches.
Stay informed by subscribing to updates from reliable sources, and take steps to protect your digital privacy to avoid similar issues in the future. This case is a reminder that your consent matters, and you have the power to demand accountability from tech companies. Act fast, stay vigilant, and don’t miss your chance to claim your share of this settlement.