Cash App, one of the most widely used peer-to-peer payment apps in the United States, has agreed to a $12.5 million settlement after facing a class action lawsuit over unwanted promotional text messages. The case was filed in Washington State and focused on referral messages that were sent without proper user consent. While Cash App’s parent company, Block, Inc., denied any wrongdoing, it chose to settle the case to avoid a lengthy legal battle.
What the Lawsuit Was About
The lawsuit revolved around Cash App’s “Invite Friends” referral feature. This feature allowed users to send text invitations to others, encouraging them to sign up for the app. The issue began when people who never used Cash App and never gave permission started receiving these referral texts. Under Washington State law, companies must obtain clear consent before sending promotional messages. Because some texts were sent without permission, the company faced legal action.
Who Qualifies for the Settlement
This settlement is not open to everyone in the U.S. It only applies to people who lived in Washington State and received referral or promotional text messages from Cash App between November 2019 and August 2025 without giving consent. Only individuals who submitted a valid claim before the deadline are eligible. Anyone who agreed to receive messages or lived outside Washington State does not qualify for payment.
How Much Money Will Eligible People Get
The total settlement fund is $12.5 million. After covering legal fees, administrative costs, and other expenses, the remaining money will be distributed among approved claimants. Most eligible individuals can expect to receive a payment ranging from $88 to $147. The exact amount depends on how many valid claims were approved. If fewer people filed claims, payments may be closer to the higher end.
Payment Timeline and Method
The settlement received final court approval in December 2025. Payments are now moving into the distribution phase and are expected to be sent in early 2026. Claimants will receive their money using the method they selected while filing the claim, such as direct deposit, cheque, or digital payment. No further action is required from those whose claims were approved.
Why This Settlement Matters
This case highlights the importance of user consent in digital communication. Even referral or promotional messages can violate the law if sent without permission. The settlement serves as a reminder that companies must respect privacy rules and that consumers have the right to protection from unwanted spam texts.
Disclaimer:
This article is for general informational purposes only and does not constitute legal or financial advice. Settlement terms, eligibility rules, and payment timelines are subject to court decisions and official notices. Readers should refer to the official settlement website or consult a qualified legal professional for personal guidance.
