The past few weeks have seen one question reverberate around the whole of Washington State—be it through online chats, Reddit conversations, or consumer forums. The question is: Is it true that Cash App will have to compensate millions for sending spam messages? The whole scenario is now understandable. The parent company of Cash App, Block Inc., has decided to settle a proposed lawsuit for $12.5 million. The class-action lawsuit accused the company of sending out unsolicited automated referral text messages to consumers in Washington.
The lawsuit Bottoms v. Block Inc. is not a typical case; rather, it highlights the conflict between the contemporary methods of fintech marketing and some of the American states’ most stringent electronic communication regulations. The number of Washington phone numbers believed to be affected by this case is around 2 million, and it is expected that once the claims process starts, the already existing thousands of residents will be receiving payments.
Why is Cash App having to write a $12.5 million check?
The “Invite Friends” referral program has been widely accepted and used by Cash App, and this is the main point of the issue. The program was intended to gain new users in the fastest way possible, and the people connected to the app would invite their friends via sending links to them. However, the complaint is made that the Cash App took these actions without the required authorization and made use of an automatic system.
In Washington state, unsolicited electronic messages are not just a nuisance, but a legal violation. The complaint stated that Cash App—
- Sent promotional messages without consent
- Used an automated referral system
- Did not comply with the Consumer Electronic Mail Act and the Consumer Protection Act
Although Block Inc. The company has not admitted to these allegations, but chose to settle to avoid a lengthy legal battle—especially since Washington state has very strict laws regarding unsolicited messages.
How much could Washington consumers receive?
The $12.5 million settlement amount will be used for the following:
- Cash payments to eligible consumers
- Notice and administration costs
- Attorneys’ fees
- Service awards to the lead plaintiffs
Based on current estimates, each eligible consumer could receive between $88 and $147. The final amount will depend on the total number of people who file a claim.
Settlement Quick Summary
| Category | Description |
|---|---|
| Total Settlement | $12.5 million |
| Estimated Class Size | Approximately 2 million phone numbers |
| Potential Payment | $88–$147 per person |
| Eligibility | WA residents who received unsolicited Cash App referral texts |
| Claim Status | Not yet open |
| Payment Options | Check, PayPal, Venmo, or e-transfer |
The more claims that are filed, the lower the individual payments will be—this is typical in all class-action cases.
Who is eligible? (Eligibility Criteria)
You may be considered part of the class if you meet these two conditions:
- Your phone number was registered in Washington State
- You received an unsolicited Cash App invitation text message between November 14, 2019 and the final determined cutoff date
Note—No official claim website has been launched yet. If a website claims to be accepting claims, it may be fraudulent. —
How will notifications be sent?
Once the court approves the next steps, then—
- Official notices will be sent to registered email addresses
- Postcards will be sent to verified addresses
- Broader consumer notifications will be sent via web notifications
- Payments will be sent electronically
This demonstrates that the administration understands consumers’ digital preferences.
Why is this case important nationally?
This dispute is not just a Washington State issue. It signals that both courts and regulators are becoming stricter on fintech companies’ aggressive user-growth models.
In recent years, Cash App has faced several regulatory actions—
- $175 million CFPB fine in 2024 (due to weak fraud protections)
- $15 million data breach settlement in 2023
This case makes it clear that courts are now treating unwanted text messages with the same seriousness as unwanted robocalls.
When will the claims website go live?
Not yet—and this is perfectly normal.
Large class-action cases typically go through these stages—
- Preliminary Approval
- Issuance of Official Documents
- Launch of Court-Approved Claims Website
- Notice Distribution
- Claim Submission
- Final Approval
- Payments
Currently, this case is between stages 1 and 2. Consumers should wait for—
- The official website
- Court-approved notices
- The appointed settlement administrator
WhenUntil all of this is officially announced, sharing your information on any site is risky.
Fact Check: Is the Settlement Confirmed?
According to public legal records—
- Yes, Bottoms v. Block Inc. is a real case
- Yes, a $12.5 million settlement has been proposed
- But final approval has not yet been granted
- The claims process has not yet begun
Therefore, stay away from any unauthorized websites or links for now.\
Conclusion
This situation is not limited to a mistake made by just one app; it brings to light the realities of a new age of technology and privacy. With digital marketing blossoming, consumer rights are also getting stronger. Cash App’s settlement of $12.5 million can be taken as a signal by firms across the country that privacy violations of consumers without consent can now be very expensive.
In case you live in Washington State and got a referral message like that, then check the claims website regularly during the next few weeks. By submitting a claim at the right moment, you will also be able to claim your share in this settlement.
FAQs
Q1. What is the Cash App spam text settlement about?
It involves a lawsuit claiming Cash App sent unsolicited referral text messages to Washington State residents without consent.
Q2. How much money can eligible users receive?
Payments are expected to range between $88 and $147, depending on the total number of claims filed.
Q3. Who is eligible for the settlement?
Anyone with a Washington State phone number who received an unsolicited Cash App invite text between Nov 14, 2019, and the final cutoff date.
Q4. Is the claims website open yet?
No. The official claims site has not launched. Any website claiming to take claims now should be avoided.
Q5. When will payments be issued?
Payments will be made only after the court gives final approval and the claims process is completed.
