If you ever received a Cash App referral text, you might be entitled to some money soon. Cash App, the popular money transfer app owned by Block Inc., has agreed to pay $12.5 million to settle a class-action lawsuit that claimed the company violated state laws by sending unsolicited commercial text messages to users.
According to court documents, the lawsuit alleged that Cash App encouraged users to send pre-filled referral texts to their contacts without the consent of the recipient. These texts promoted Cash App’s “Invite Friends” feature that offered users $5 for every person who signed up using their referral code.
The settlement comes after Cash App denied having done anything wrong but still agreed to the settlement to avoid the high costs and extended process of litigation.
Why the lawsuit was filed
The case was originally filed in Washington state, which has strict laws against sending spam text messages to residents without consent. The plaintiffs argued that Cash App indirectly violated these rules by making it easy for users to send marketing texts to their friends through the app.
Cash App, in its defense, said that it did not directly send or assist in sending the messages. “Block did not initiate or assist in the transmission of a text message to Plaintiff and/or others alleged to be members of the putative class,” the company said in its court filings.
Still, the company agreed to the $12.5 million settlement to resolve the issue and compensate users that have been affected.
Who is eligible to receive a payment
You may qualify for a payment from this settlement if you meet all of the following conditions:
- You received a Cash App referral text message between November 14, 2019, and August 7, 2025.
- You were a Washington state resident at the time you received the message.
- You did not clearly consent to receive the text message in advance.
An example of the type of message covered under this settlement is:
“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.
How much money you could get
The settlement fund will provide payments ranging from $88 to $147 to eligible claimants. The final amount you receive will depend on how many people file valid claims before the deadline.
If you are eligible, you must submit a claim form by October 27. Claims can be submitted online or by mail, and payments will be sent once the court grants final approval of the settlement.
To file your claim, you will need to provide the phone number that received the referral text. If you no longer have access to that number, you can note that on your claim form.
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What to know about class action settlements
If you are wondering what a class-action settlement is, it is basically a way for a large group of people with similar complaints to take legal action together. Instead of hundreds or thousands of people filing separate lawsuits, one or a few individuals represent the entire group.
When the case is settled, the company agrees to pay money to everyone in the group, known as class members. By accepting the payment, class members typically agree not to pursue additional lawsuits against the company for the same issue.
These settlements are common in cases involving consumer privacy violations, data breaches, misleading advertising, and unauthorized charges.
When you can expect your payment
Payments will be distributed once the court gives final approval to the settlement. That approval process can take a few months after the claim deadline.
This lawsuit comes almost a year after Cash App and its parent company, Block Inc., settled another case related to data security incidents that exposed customer information. In that case, the company also denied wrongdoing but agreed to compensate users affected by data breaches.
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