Cash App $12.5M Settlement – $147 Payout for Users After Spam Text Class Action Lawsuit

Cash App $12.5M Spam Text Settlement: In a significant win for consumer privacy, Cash App’s parent company, Block Inc., has agreed to a $12.5 million class action settlement to resolve allegations of sending unsolicited spam text messages through its “Invite Friends” referral program. Filed in 2023 by Washington resident Kimberly Bottoms, the lawsuit accused Block of violating the Washington Consumer Protection Act and federal Telephone Consumer Protection Act (TCPA) by bombarding users with promotional texts without clear consent. While Block denies wrongdoing, the settlement provides relief to affected users, with preliminary court approval granted on July 29, 2025, and a final fairness hearing scheduled for December 2, 2025. If approved, payments could start shortly after, but the claim deadline is fast approaching: October 27, 2025. Here’s a comprehensive breakdown of the settlement, eligibility, and how to claim your potential payout.

Background: The Spam Text Controversy

The class action stemmed from Cash App’s referral feature, which allegedly allowed users to send automated texts 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.” These messages targeted non-users without affirmative opt-in, leading to complaints of harassment. The suit covered nearly 2 million Washington-area phone numbers, highlighting broader concerns over digital marketing privacy. Block settled on June 30, 2025, to avoid prolonged litigation, marking another chapter in the company’s legal challenges (e.g., a separate $15M data breach settlement in 2024).

This case underscores the TCPA’s role in curbing spam, as courts increasingly hold tech firms accountable for unsolicited communications.

Who Qualifies? Eligibility Criteria

To be eligible for a payout, you must meet these requirements:

• Residency: Lived in Washington state during the period.
• Time Frame: Received one or more unsolicited “Invite Friends” or promotional texts from Cash App between November 14, 2019, and August 7, 2025.
• Consent: Did not clearly and affirmatively consent to receive the messages (e.g., no prior opt-in for marketing texts).
• Phone Records: Your number must appear in Block’s records of sent texts—no proof required from you, as the company will verify.

The class includes U.S. residents with Washington area codes who were impacted. If you used Cash App or got referral invites, check your old messages—many qualify automatically if their number matches the database.

Eligibility Factor	Details
Location	Washington state residents
Message Type	Cash App “Invite Friends” texts
Date Range	Nov. 14, 2019 – Aug. 7, 2025
Consent Required	None (unsolicited only)
Proof Needed	None—Block verifies via records

Payout Details: Up to $147 Per Claim

Class members who file valid claims will receive an equal share of the net settlement fund after deductions for fees and administration (estimated 25-30% for attorneys/costs). Based on ~2 million potential members:

• Estimated Payout: $88 to $147 per person.
• Pro Rata Basis: If fewer claims are filed, payments could exceed $147; more claims mean lower amounts (minimum $25 guaranteed).
• Payment Method: Electronic transfer or check, issued post-final approval (expected early 2026).
• No Claim, No Payout: Automatic inclusion in the class, but you must opt out by October 27, 2025, if you disagree with terms.

Block also agrees to improve consent practices and delete non-consensual contact data.

Payout Aspect	Estimate/Details
Per Claim	$88–$147 (pro rata)
Total Fund	$12.5M (after deductions)
Minimum Guarantee	$25 per valid claim
Issuance Timeline	Early 2026 (post-approval)

How to File a Claim: Simple Steps Before Deadline

Claims are straightforward—no lawyer or documents needed. Follow these:

1. Visit the Official Site: Go to the court-approved settlement portal (search “Bottoms v. Block Text Settlement”).
2. Enter Your Info: Provide your phone number, name, address, and email—Block will match it to records.
3. Submit by Deadline: October 27, 2025 (postmarked if mailing).
4. Track Status: Use the portal for updates; expect email confirmation.

For objections or exclusions, submit by the same date. A toll-free helpline offers assistance. Beware scams—only use the official portal; never pay fees or share sensitive data.

Broader Implications: Privacy Wins in the Digital Age

This settlement highlights growing scrutiny on fintech spam, following similar cases against Venmo and Robinhood. It reinforces TCPA protections, potentially deterring aggressive referral tactics. For Cash App users, it’s a reminder to review privacy settings and opt out of marketing (via app: Profile > Privacy & Security > Communications). If approved, it could distribute millions to everyday users, proving collective action works.

If you received those pesky texts, file soon—the clock is ticking. Questions? Consult a consumer attorney. Have you been affected by similar spam? Share below!