A $12.5 million Cash App referral text settlement is moving forward in federal court, and consumers who may qualify for compensation should prepare for upcoming deadlines. The proposed resolution stems from a Cash App class action lawsuit over allegations that the company facilitated the sending of unsolicited referral text messages to Washington residents. Claimants could receive an estimated payout ranging from $88 to $147 per valid claim once the settlement website goes live and forms become available.
Background of the Case
The case, Bottoms v. Block, Inc., No. 2:23-cv-01969-MJP, was filed in the U.S. District Court for the Western District of Washington. Judge Marsha J. Pechman is overseeing the proceedings.
The lawsuit was brought by plaintiff Kimberly Bottoms, who alleged that digital wallet Cash App’s parent company, Block, Inc., violated Washington state law by substantially assisting users in sending unsolicited text messages through Cash App’s “Invite Friends” referral program.
According to the complaint, users were encouraged to send pre-filled referral texts to their contacts, offering incentives for sign-ups.
The allegations center on potential violations of the Commercial Electronic Mail Act (CEMA) and the Consumer Protection Act (CPA). Under the CEMA, recipients of unsolicited commercial text messages may be entitled to damages of $500 per message, with the CPA allowing treble damages in some cases.
Block, Inc., which operates as Cash App, has denied any wrongdoing. The company maintains that it has complied with all applicable laws and continues to reject liability. Nevertheless, the company agreed to a settlement in order to avoid the uncertainty and cost of continued litigation.
As per the draft notice of proposed class action settlement, the Cash App spam text lawsuit alleges that the referral program improperly relied on consumers to transmit commercial text messages without first obtaining clear and affirmative consent from recipients. The lawsuit argues that Cash App benefited by incentivizing users to send texts, even when recipients had not opted in to receive such messages.
Settlement Details
If approved, the Block Inc. class action settlement will establish a fund worth $12.5 million. This fund is intended to:
- Pay eligible class members.
- Cover notice and administrative costs.
- Fund attorneys’ fees, costs, and expenses, subject to court approval.
- Provide a service award to the class representative.
For eligible claimants, the Cash App settlement payout is estimated to fall between $88 and $147 per valid claim. The final amount will depend on the number of valid claims submitted. The more claims filed, the lower the per-person payout, and vice versa.
Who Qualifies for a Settlement Payment
The Cash App referral text settlement applies to a specific group of individuals. You may qualify if:
- You received a Cash App referral text message on or after November 14, 2019.
- You were a Washington resident at the time you received the message.
- You did not give clear and affirmative consent to receive the commercial text.
Claimants will need to provide certain information when submitting their forms, including the phone number that received the text. In some cases, a unique claim code provided in official notices may also be required.
How to File a Claim
The Cash App text message claim process will open once the official settlement website goes live, which is expected in mid to late August 2025, following court approval of the preliminary settlement notice.
Class members will be able to file claims in two ways:
- Online submission via the official settlement website
- Mail submission using a printed claim form
Payments can be issued by check, PayPal, Venmo, or other methods offered by the administrator. Claimants must complete and submit their form by the Cash App claim deadline for 2025, which will be announced soon.
Those who do nothing will not receive a settlement payment and will likely waive their right to bring a separate lawsuit over the same issues.
Court Proceedings and Timeline
The settlement has received preliminary approval, but it is not final. The court has scheduled a Final Approval Hearing for December 2, 2025, at 10:00 a.m. at the U.S. District Court for the Western District of Washington. During this hearing, Judge Pechman will decide whether the settlement is fair, reasonable, and adequate. The court will also review requests for attorneys’ fees, litigation costs, and the service award for the class representative.
If the court grants final approval, payments will be issued to qualifying class members after the settlement is administered. Once the settlement website becomes active, deadlines for exclusion requests, objections, and claim submissions are expected to be announced.
What Class Members Should Know
Consumers who fall within the class definition have several options:
- Submit a claim form: Receive an estimated payout of $88 to $147.
- Do nothing: Forfeit payment and release the right to sue Cash App separately.
- Opt out: Exclude yourself from the settlement and retain the right to file your own case.
- Object: File an objection if you believe the settlement terms are unfair.
Broader Context and Implications
The Cash App unsolicited text compensation case highlights broader issues of digital privacy and the regulation of text-based marketing. Washington state’s CEMA and CPA laws are designed to protect residents from unwanted commercial messages, and this lawsuit underscores how referral programs can fall into legal scrutiny when consent is unclear.
For consumers, the case serves as a reminder of the importance of consent in marketing practices and the role of class action lawsuits in holding companies accountable.
Block, Inc. continues to deny liability, and says the settlement reflects a business decision to avoid extended litigation rather than a concession of wrongdoing.
Wrapping Up
The proposed Cash App referral text settlement represents a $12.5 million fund for Washington residents who received Cash App referral texts without their consent. Depending on the number of valid claims, eligible claimants may receive between $88 and $147.
With the Cash App claim deadline for 2025 fast approaching, consumers are encouraged to monitor the official settlement website once it launches. The court’s final approval hearing is set for December 2, 2025.
Frequently Asked Questions (FAQ)
It concerns allegations that Cash App and its parent company, Block, Inc., helped users send unsolicited referral texts in Washington without proper consent.
Washington residents who received a referral text on or after November 14, 2019, without providing affirmative consent, may qualify.
The Cash App settlement payout is estimated at $88–$147 per valid claim, though the final amount depends on the number of claims approved.
The claim submission deadline has not yet been announced, but is expected to be in 2025. Once available, the official settlement website will publish this information.
No. Block, Inc. denies wrongdoing and maintains that it complied with the law. The Cash App class action lawsuit settlement is not an admission of liability.
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