Cash App users across the United States are paying attention after news confirmed a major legal settlement involving the popular payment platform. Cash App has agreed to a $12.5 million settlement following allegations that promotional text messages were sent to people without proper consent. While the company has denied wrongdoing, the settlement means some eligible individuals may now receive a cash payment as compensation.
Background of the Cash App Text Message Lawsuit
The lawsuit was filed in Washington State and focused on Cash App’s “Invite Friends” referral feature. This feature allowed existing users to send invitation messages encouraging others to join the app. The problem arose when people who had never signed up for Cash App, and never agreed to receive marketing messages, began receiving promotional texts. Under Washington law, companies must have clear permission before sending such messages, which led to legal action against Cash App’s parent company, Block, Inc.
Why Cash App Agreed to Settle
Block, Inc. stated that it did not believe it violated any laws. However, instead of continuing with a lengthy and expensive court battle, the company chose to settle the case. By agreeing to the $12.5 million settlement, Cash App avoided further litigation while allowing affected individuals to receive compensation without admitting fault.
Who Is Eligible for a Payment
Not everyone who uses Cash App qualifies for this settlement. Eligibility is limited to people who lived in Washington State and received referral text messages through Cash App’s system between November 2019 and August 2025. Those individuals must not have given consent to receive marketing texts and must have submitted a valid claim before the deadline. People living outside Washington or those who agreed to receive messages are not included.
How Much Money Eligible Users May Receive
After legal fees, administrative costs, and other expenses are deducted from the settlement fund, the remaining amount is shared among approved claimants. Payments are expected to range roughly between $88 and $147 per person. The exact amount depends on how many claims were approved. If fewer people qualified than expected, individual payments may be closer to the higher end of that range.
When and How Payments Will Be Sent
The court gave final approval to the settlement in December 2025. Payments are now scheduled to be distributed in early 2026. Approved claimants do not need to take any further action. Payments will be sent using the method selected during the claim process, such as direct deposit, mailed cheque, or digital payment.
Why This Settlement Matters
This case highlights the importance of consumer consent in digital marketing. Even referral messages can violate the law if sent without permission. The settlement serves as a reminder that companies must carefully manage how they communicate with users and non-users alike.
Disclaimer:
This article is for informational purposes only and does not provide legal or financial advice. Settlement amounts, eligibility rules, and payment timelines are based on court-approved terms and may vary. Readers should rely on official settlement communications or consult a qualified professional for guidance related to their individual situation.
