Cash App Faces $12.5M Payout to Users, From Spam to Settlement

Cash App, the popular peer-to-peer money transfer platform owned by Block Inc., is set to pay \$12.5 million to settle a class action lawsuit alleging it sent thousands of unsolicited promotional texts to Washington residents without their permission.

The settlement, which could affect nearly 2 million phone numbers, is the latest in a string of legal and regulatory troubles facing the financial technology giant. While Cash App denies wrongdoing, the company agreed to settle in order to avoid what could have been a lengthy and expensive trial.

What Sparked the Case?

The lawsuit originated in November 2023, when Kimberly Bottoms, a Washington resident, filed a complaint in the U.S. District Court for the Western District of Washington. She claimed she received a Cash App “Invite Friends” referral text message despite never registering for the app or granting consent to be contacted.

Her attorneys argued that Cash App’s automated referral messages violated Washington’s Consumer Protection Act and the Consumer Electronic Mail Act, both of which safeguard consumers against unauthorized marketing.

Court documents reveal the messages were sent as early as November 14, 2019, and continued for years. The program encouraged users to invite friends to join Cash App, often promising rewards. However, in many cases, recipients say they were never users of the platform in the first place.

Who Will Benefit From the Settlement?

The class action settlement includes anyone who:

• Had a Washington state area code.
• Received an “Invite Friends” text from Cash App.
• Was contacted between November 14, 2019, and a yet-to-be-finalized cutoff date.

Estimates suggest the class includes close to 2 million unique phone numbers. If all eligible individuals file valid claims, each could receive a share of the settlement fund.

How Much Will People Get Paid?

The settlement allocates \$12.5 million for payouts, but that sum also covers:

• Attorney fees.
• Administrative costs.
• A service award to the lead plaintiff, Kimberly Bottoms.

After deductions, the remaining funds will be distributed to eligible claimants. Based on current estimates:

• Each person may receive between \$88 and \$147.
• Final amounts depend on how many people submit valid claims.

Under federal law, consumers may be entitled to up to \$500 per violation. However, the settlement represents 17%–29% of the maximum potential recovery.

How Will Payments Be Distributed?

Those approved for payment will have a choice:

• A paper check mailed directly to their home.
• A digital transfer via services such as PayPal or Venmo.

When filing a claim, individuals will select their preferred payout method.

How Do You Know If You Qualify?

Although claim forms have not yet been released, people whose numbers are identified in Cash App’s records will be notified.

Expect outreach through:

• Postcards in the mail.
• Emails explaining the claims process.
• Digital ads, redirecting users to the official settlement website once live.

The settlement administrator will launch a dedicated claims website, where eligible users can file online forms.

Timeline of Events

Date	What Happened
Nov 2023	Lawsuit filed by Kimberly Bottoms
Jun 30, 2025	Motion filed for preliminary approval of settlement
Jul 11, 2025	Settlement details released to the public
Late 2025	Notices sent to class members, claims process begins

Final court approval is expected later in 2025, with payouts likely in 2026.

Other Legal Trouble for Cash App

This is not the first time Cash App has found itself in regulatory hot water.

• In 2022, the company paid \$15 million to settle claims related to a data breach.
• In early 2025, the Consumer Financial Protection Bureau (CFPB) fined Cash App \$175 million for customer service failures and mishandling fraud cases.

Although the platform still boasts over 55 million users, app downloads reportedly dropped by 15% year-over-year, raising questions about consumer trust.

Why It Matters

For fintech companies like Cash App, reputation is just as important as compliance. With mounting legal issues, the company faces scrutiny over its marketing practices, security protocols, and customer service operations.

Consumer advocates say the case underscores a growing need to regulate digital financial platforms, especially as they expand beyond simple peer-to-peer transfers into banking, investing, and lending.

The Bigger Picture: Spam Text Settlements on the Rise

Cash App’s settlement is part of a broader wave of litigation targeting spam text marketing. Across industries, companies from ride-sharing platforms to online retailers have been sued under consumer protection laws for sending unsolicited messages.

Legal experts note that even well-intentioned referral programs can land companies in court if they bypass consumer consent.

What Users Should Do

If you believe you qualify for the Cash App settlement:

1. Watch for postcards, emails, or digital notices later in 2025.
2. Visit the official settlement website once available.
3. File your claim before the court-approved deadline.
4. Choose your preferred payment method.

Consumers should also remain alert for scams. Fraudulent websites often appear around class action settlements—official notices will come only from the court-appointed administrator.

5 FAQs on the Cash App Spam Text Settlement

Q1. Why is Cash App paying \$12.5 million?
To settle a lawsuit claiming the company sent unsolicited “Invite Friends” promotional texts to Washington residents in violation of consumer protection laws.

Q2. Who qualifies for settlement money?
Anyone with a Washington state area code who received a Cash App referral text between Nov 14, 2019, and the final cutoff date.

Q3. How much will individuals receive?
Payments are estimated at \$88–\$147 per person, depending on the number of valid claims filed.

Q4. How will payouts be sent?
Claimants can select either a paper check or a digital transfer via PayPal or Venmo.

Q5. When will payments be made?
Notices will be sent in late 2025, with payouts expected in 2026 once the court grants final approval.