Spam messages are everywhere, and we cannot escape them. However, some Cash App users may be eligible to receive compensation due to a class action settlement against the electronic transaction service.

CNET reported that Block, the parent company of Cash App, agreed to a $12.5 million class action settlement after being sued for sending unsolicited spam text messages to customers in Washington state.

Plaintiff Kimberly Bottoms, a Washington resident, filed the suit in November 2023. According to her claim, Cash App violated two Washington state laws — the Consumer Electronic Mail Act and the Washington Consumer Protection Act — through its “Invite Friends” referral program.

Although Block did not admit wrongdoing, the settlement aims to compensate affected users. Bottoms submitted a motion for approval in Washington state federal court at the end of June, per CNET.

When did Washington residents receive the spam text messages?

The settlement applies to Washington residents who received these spam messages between Nov. 14, 2019, and an unspecified end date.

Around 2 million people may be eligible for settlement funds. Block will soon notify potential claimants via email and physical mail with details on how to participate once the court approves the settlement.

While no official deadline to join the settlement has been announced, claims need to be submitted in a timely manner. Payment amounts are expected to range from $88 to $147 per person, depending on how many eligible users file claims.

Other Cash App lawsuits

The settlement follows other recent legal challenges for Cash App, including a $15 million payout over unauthorized data access and a $175 million penalty related to weak security controls.

The company will provide additional information to customers as the settlement process progresses.

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