Washington residents who received referral texts from Cash App may now claim between $88 and $147 after a $12.5 million class action settlement. The lawsuit alleges the app violated state law by enabling unsolicited messages without user consent.
Cash App, the mobile payment service owned by Block Inc., has agreed to a $12.5 million settlement following claims it breached consumer privacy laws. Eligible users who received a referral message from the app could now receive a compensation payout if they file a claim by 27 October 2025.
The class action, filed in Washington state, challenges the legality of Cash App’s “Invite Friends” feature, which encouraged users to send promotional texts offering a sign-up bonus. At the heart of the issue is whether recipients gave prior consent to receive such communications.
Referral Texts Under Scrutiny in Privacy Law Challenge
The class action lawsuit centres around a Washington state law that prohibits sending commercial text messages without explicit consent. According to Top Class Actions, the claimants argue that Cash App’s “Invite Friends” feature violated this legislation by allowing users to send pre-written referral messages to their contacts without the recipient’s prior approval.
An example of such a text reads: “Hey! I’ve been using Cash App to send money and spend using the Cash Card. Try it using my code and you’ll get $5.” These messages were allegedly transmitted using contact information stored in users’ phones, rather than being initiated by the company directly.
In response, Block Inc. denied any wrongdoing, maintaining that it did not provide “substantial assistance” in sending the texts. As reported by Payments Dive, the company stated in court that “Block did not initiate or assist in the transmission of a text message to Plaintiff and/or others.”
Despite denying the allegations, Cash App agreed to the $12.5 million settlement to resolve the case. Those eligible include individuals who received one of the referral texts between 14 November 2019 and 7 August 2025, were residents of Washington at the time, and did not give clear prior consent. Claims can be filed online or by post, and payouts are expected to fall between $88 and $147, depending on the total number of claimants.
A Second Legal Challenge Highlights Ongoing Scrutiny
This isn’t the first time Cash App has faced legal pressure. Nearly a year prior, Block Inc. and Cash App Investing, LLC were named in another class action, this time over data security breaches that allegedly resulted in unauthorized transactions and misuse of customer information.
According to Top Class Actions, the previous case focused on security incidents that took place in April 2022 and October 2023, with claims the companies were negligent and failed to properly safeguard sensitive financial data. While denying responsibility, both entities reached a settlement in that case as well.
At a time when digital finance platforms are under increasing scrutiny, such legal developments reflect growing demands for transparency and accountability in how companies manage user communications and data privacy.
Consumers wishing to claim their payout in the current texting settlement can do so by visiting the Bottoms Text Settlement website, where they must provide the phone number on which they received the referral text. If the number is no longer active, an alternative verification method is available.
