Cash App Settlement Approved, American Residents to get $147 for Spam Texts

A major legal settlement involving Cash App, the popular mobile payment service, has been officially approved by a federal court in the United States. This development comes after years of complaints from people who said they received unsolicited promotional text messages from Cash App without giving clear permission. The texts were linked to the service’s referral or “Invite Friends” feature, which encouraged users to invite others to use the app.

The lawsuit, filed in federal court in Washington state, focused on these automated messages. Plaintiffs claimed that the texts were sent to phone numbers without consent, sometimes even to recipients who did not have a Cash App account. The case highlighted concerns about consumer privacy and how businesses handle digital marketing.

With the settlement now approved, eligible individuals who filed valid claims before the deadline are expected to receive a payment. Estimates suggest that these payments could be as much as $147 per person, depending on how many valid claims are approved and how the total settlement amount is divided.

Background of the Cash App Lawsuit

The legal action began after a Washington state resident filed a class action lawsuit against Cash App’s parent company, Block, Inc. The complaint alleged that promotional text messages sent through the Cash App “Invite Friends” tool violated state and federal consumer protection laws because they were sent without clear consent from the recipients.

These messages were intended to encourage people to join Cash App by using a referral link, often offering a small bonus for both the sender and the recipient. However, recipients argued they did not agree in advance to receive commercial marketing texts, leading them to label the messages as spam.

Rather than continue a protracted legal battle, the parties reached an agreement to settle the case for $12.5 million. Block did not admit any wrongdoing as part of this settlement, but agreed to pay the amount to resolve the dispute and compensate class members.

Who Is Eligible for the Settlement Payment?

The settlement applies to a specific group of people known as the settlement class. To qualify, individuals must meet several criteria:

• They must have received one or more Cash App promotional or referral text messages between November 14, 2019, and August 7, 2025.
• They must have been residents of Washington state at the time they received these messages.
• They must not have previously given clear and affirmative consent to receive the text messages.
• They must have submitted a valid claim by the deadline set by the court (October 27, 2025).

Only individuals who meet all these requirements can receive a share of the settlement funds. People who did not live in Washington or who opted in to receive Cash App texts are not part of this settlement class.

Settlement Amount and Estimated Payments

The total settlement fund in this case is $12.5 million. After legal fees, administrative costs, and a service award for the class representative are deducted, the remainder will be shared among all eligible claimants.

Payments to individuals are not set at a fixed amount, but based on how many valid claims are approved and how much money remains in the fund after expenses. Early estimates indicate that most claimants could receive between $88 and $147 each.

The amount varies because the settlement money has to be divided fairly among all valid claimants. If many people file approved claims, the individual share may be toward the lower end of that range. Conversely, if fewer people file claims, the payment per person could be higher.

Claims Process and Verification

To receive payment, eligible individuals were required to submit a claim form by the deadline set in the settlement agreement. This process typically involves providing basic information such as:

• Phone number where the promotional text was received;
• Confirmation of Washington state residency at the time the messages were received; and
• A declaration that the claimant did not clearly consent to receive the messages.

Once claims were submitted, a settlement administrator was responsible for reviewing and verifying them. Invalid or incomplete claims were excluded from the approved claimant list, and only verified claimants are eligible for payment.

Timeline for Payments

The federal court gave final approval to the settlement in late 2025, clearing the way for the distribution of funds. Payments are expected to begin in early 2026, once the settlement administrator completes claim verification and processing.

Claimants do not need to take further action after submitting a valid claim, unless they receive specific instructions from the administrator. Approved claimants will receive their payment through the method they indicated on their claim form, which may include direct deposit, mailed check, or electronic transfer.

Significance of the Settlement

This settlement is significant for several reasons. It shows that consumer privacy laws apply to digital marketing tools, including automated referral programs. Even when users invite friends or contacts, companies must ensure that recipients consent to receive promotional communications.

For many consumers, the settlement also represents a tangible benefit, money paid directly to individuals who were affected by these unsolicited messages. It also highlights the importance of paying attention to legal notices and claim deadlines, because missing a deadline can mean losing the opportunity to receive compensation.

Finally, the case serves as a reminder for technology companies to review their marketing practices and comply with privacy and consumer protection standards. Automated tools that seem harmless to users could still lead to legal challenges if they violate consent requirements.