Cash App is a widely used peer-to-peer payment app in the United States. Recently, the company agreed to pay $12.5 million to settle a legal case related to unwanted promotional text messages. The lawsuit claimed that Cash App sent referral or marketing texts to people who never gave permission to receive them.
The case was filed in Washington State and focused on messages sent through Cash App’s “Invite Friends” feature. Some individuals received these texts even though they never signed up for the app or agreed to receive promotional messages. Although Cash App’s parent company, Block, Inc., said it did nothing wrong, it chose to settle the case to avoid a long and costly court process.
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The lawsuit mainly targeted how Cash App handled its referral system. The app allowed users to send invitation texts to friends and contacts, but problems started when messages were delivered to people who never consented to receive them.
The issue was not caused by individual users but by how the system was designed and controlled. Washington State has strict consumer laws that require clear permission before businesses can send marketing texts. Since some messages were sent without consent, Cash App faced claims under two major laws, including the Washington Commercial Electronic Mail Act, which regulates digital advertising, and the Washington Consumer Protection Act, which protects people from unfair business practices.
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Only certain people qualify to receive money from this settlement. To be eligible, all conditions listed below must be met.
You must have received one or more Cash App referral or promotional text messages between November 14, 2019, and August 7, 2025. You must have lived in Washington State during that time. You must not have given permission to receive those messages. You must also have submitted a valid claim before the deadline of October 27, 2025.
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Payment Amount and Expected Timeline
The settlement fund totals $12.5 million. This money is not only for payments to claimants but also covers legal costs and administrative expenses. After these deductions, the remaining amount will be divided among approved claimants.
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Important Settlement Dates
| Settlement Event | Date |
|---|---|
| Start of eligible message period | November 14, 2019 |
| End of eligible message period | August 7, 2025 |
| Claim submission deadline | October 27, 2025 |
| Final court approval | December 2, 2025 |
| Expected payment date | January 30, 2026 |
How the Claims Process Was Handled
To receive payment, eligible individuals were required to submit a claim either online or by mail. Claimants had to confirm the phone number that received the messages, show proof that they lived in Washington State at the time, and state that they did not agree to receive marketing or referral texts.
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What Happens Next
Since the court gave final approval in December 2025, the settlement has now entered the payment phase. People who already filed an approved claim do not need to take any further steps. Payments will be sent automatically using the method selected during the claim process, including direct deposit, mailed checks, or digital payment options, starting in early 2026.
Why This Settlement Matters
This settlement highlights how important user consent is in digital communication. Even simple referral or promotional messages can lead to legal problems if they are sent without permission.
The case helps Washington residents who were affected receive compensation, pushes companies to improve their marketing practices, and shows how strong consumer protection laws can hold businesses accountable. In a world filled with digital advertising, this settlement sends a clear message that user privacy and consent must always come first.
FAQ
Q1: What is the Cash App settlement about?
It involves unwanted referral texts sent without consent, violating Washington State laws.
Q2: Who can claim the settlement money?
Washington residents who received unauthorized texts and filed a valid claim on time.
Q3: How much will eligible users receive?
Payments are estimated to range from $88 to $147.
Q4: When will payments be sent?
Payments are expected to be distributed in early 2026.
Q5: Is any action required now?
No, approved claimants only need to wait for payment.
