Cash App, operated by Block Inc., has agreed to pay $12.5 million to settle a class action lawsuit accusing the company of sending unsolicited referral text messages. The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleged that Cash App violated state consumer protection laws by distributing promotional messages without user consent through its “Invite Friends” referral program.
The texts, according to the complaint, were sent to individuals with Washington state mobile numbers between November 14, 2019, and a date yet to be finalized. The messages encouraged recipients to sign up for Cash App using a referral link that would benefit the sender. The company denies wrongdoing but agreed to the settlement to avoid ongoing litigation costs.
📱💬 Cash App’s parent company, Block Inc., has agreed to a $12.5 million settlement over allegations of sending unsolicited spam texts through its “Invite Friends” program. Did you get unwanted texts from this company? #CashApp https://t.co/sWK624pUnR
— Top Class Actions (@TopClassActions) July 18, 2025
Table of Contents
Lawsuit Filed Under Washington Privacy Laws
Plaintiff Kimberly Bottoms filed the complaint in November 2023, stating that she received multiple referral messages from Cash App despite never signing up for the platform. The suit claimed violations of the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act, both of which require explicit consent before sending commercial communications.
The complaint highlighted that the messages were part of a broader automated campaign and affected nearly 2 million Washington phone numbers. These texts allegedly used users’ contacts to trigger unsolicited invites, bypassing the consent process required by law.
Eligibility and Payout Details
The class action settlement covers all individuals with Washington-based mobile numbers who received a referral text from Cash App’s system during the defined period. To receive compensation, eligible individuals must submit a valid claim form once the settlement website is live.
Payouts are estimated to range between $88 and $147 per person, depending on the total number of valid claims submitted. These figures represent about 17% to 29% of the $500 per-message statutory damages permitted under Washington law.
| Settlement Component | Details |
|---|---|
| Total Settlement Fund | $12.5 million |
| Estimated Payment per Claim | $88 – $147 |
| Eligibility Period Start | November 14, 2019 |
| Location of Claimants | Washington state phone numbers |
| Law Cited | WA Consumer Electronic Mail Act & CPA |
Claims Process and Distribution
The settlement administrator will notify class members through email and mailed notices. A public notice campaign using social media and online ads will also be launched. Claimants will be able to file electronically and choose to receive payment by check, Venmo, or PayPal/eBay deposit.
| Process Step | Details |
|---|---|
| Notification Method | Email, mail, online ads |
| Claim Submission | Via official settlement website |
| Payment Options | Check, Venmo, PayPal/eBay |
| Distribution Timeline | Post-claim deadline and court approval |
Previous Legal Actions Against Cash App
This is not the first legal challenge for Block Inc. Earlier in the year, the company agreed to a $15 million data breach settlement involving user tax information. Additionally, the Consumer Financial Protection Bureau ordered Cash App to pay $175 million over alleged customer service failures and weak fraud controls.
These recent settlements indicate increased scrutiny of fintech platforms like Cash App, especially regarding user data, digital communication practices, and consent requirements.
