The cash app class action lawsuit settlement has captured the attention of millions of U.S. users. Cash App’s parent company, Block, Inc., has agreed to pay $12.5 million to resolve allegations that the company violated privacy laws by sending unsolicited “Invite Friends” promotional text messages without user consent. Eligible users could receive payments estimated between $88 and $147, depending on the number of claims submitted.
This settlement marks an important moment for consumer privacy and serves as a reminder that companies must respect user consent when conducting marketing campaigns. Below is a comprehensive breakdown of everything users in the United States need to know about the settlement — including eligibility, key dates, and how to file a claim.
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Background: Why the Lawsuit Was Filed
The class action lawsuit, filed in late 2023, alleges that Cash App violated the Telephone Consumer Protection Act (TCPA) and various state privacy laws. According to the complaint, Cash App encouraged users to send referral messages to their contacts as part of its “Invite Friends” program, without verifying whether recipients had agreed to receive those texts.
These unsolicited texts were sent to thousands of users across the country, leading to complaints about spam, privacy violations, and unwanted marketing. Plaintiffs argued that this behavior violated their rights and sought compensation for the intrusion.
Block, Inc. has agreed to settle the lawsuit to avoid further litigation. While the company denies wrongdoing, the settlement allows affected users to receive compensation without going through a lengthy legal battle.
Key Terms of the Settlement
- Total Settlement Fund: $12.5 million
- Estimated Individual Payments: Between $88 and $147 (depending on claim volume)
- Final Approval Hearing: Scheduled for December 2, 2025
- Settlement Administrator: A third-party administrator will handle claims, verification, and payment distribution.
- No Proof of Monetary Loss Required: Users only need to show they received the unsolicited text messages during the eligible time period.
This means that even if you didn’t lose any money because of the texts, you may still qualify for compensation simply for having received them.
Eligibility: Who Can File a Claim
You may qualify for the cash app class action lawsuit settlement if:
- You received one or more unsolicited “Invite Friends” promotional texts sent through Cash App during the specified time period.
- Your phone number matches Block’s internal records of recipients.
- You submit a valid claim before the deadline, once the official settlement site is launched.
Importantly, you don’t need to prove any financial damages. The settlement is based on violations of privacy and communication laws, not monetary loss.
How to File a Claim for the Settlement
Once the official settlement website is launched, eligible users will need to submit a claim form. Here’s a step-by-step overview:
- Go to the Official Settlement Website
The site will contain the claim form and detailed instructions. Users will also find the filing deadline and contact information for the settlement administrator. - Provide Your Information
You’ll need to enter your full name, mailing address, email address, and the phone number that received the texts. This is how your claim will be verified. - Confirm Eligibility
The administrator will match your phone number against Cash App’s records of recipients. - Submit the Claim Before the Deadline
Claims submitted after the deadline will not be accepted. Filing early ensures your claim is processed on time. - Wait for Payment
After the court grants final approval and any appeals are resolved, payments will be sent out. The exact timeline will depend on the number of claims and processing time.
What Happens After the Final Approval Hearing
The final approval hearing is scheduled for December 2, 2025. If the court approves the settlement:
- Payments to eligible claimants will begin shortly afterward.
- Claim amounts will be prorated, meaning if more people file than expected, individual payments could be on the lower end of the $88–$147 range.
- Users will receive their payments via check or direct deposit, depending on their selection when filing the claim.
- Block, Inc. will not admit any wrongdoing as part of the settlement.
If there are objections or appeals after final approval, distribution may be delayed until those matters are resolved.
Why This Settlement Matters for Users
This lawsuit highlights a larger trend in consumer protection. Tech and fintech companies are under increasing scrutiny for how they use user data and conduct marketing. Here’s why this settlement is significant:
- Protecting Privacy: It reinforces that companies must obtain proper consent before sending promotional messages.
- Holding Companies Accountable: It shows that large tech firms can face real financial consequences for violating consumer protection laws.
- Compensation for Users: Although the payout may not be life-changing, it gives affected users a tangible remedy for privacy violations.
- Shaping Future Marketing Practices: Companies are likely to revise their referral and messaging programs to avoid similar lawsuits in the future.
For Cash App, this settlement comes at a time when its parent company is already facing regulatory scrutiny and multiple legal challenges related to compliance and consumer protection.
Important Tips for Potential Claimants
If you believe you qualify for the settlement, keep these points in mind:
- Use the same phone number that received the messages when filing your claim.
- File early to avoid last-minute delays or issues.
- Watch for official announcements about when the claim site opens — this is where deadlines and instructions will be posted.
- Keep records of any text messages you received, even though you may not need them to file.
Wider Legal Context for Cash App
The class action settlement isn’t the only legal challenge Cash App’s parent company has faced recently. Over the past year, regulators have increased oversight of fintech companies, including investigations into anti-money laundering practices, fraud controls, and consumer disclosures.
In early 2025, Block agreed to pay significant penalties to U.S. regulators related to compliance failures. These actions, combined with the class action lawsuit settlement, highlight a changing regulatory landscape for digital finance companies operating in the U.S.
Looking Ahead
The cash app class action lawsuit settlement is a reminder for both consumers and companies about the power of collective legal action. For users, it’s an opportunity to receive compensation for privacy violations. For companies, it’s a clear signal that practices once considered routine marketing can carry serious legal risks if they bypass consumer consent.
The coming months will be crucial. Once the settlement website is live and the claim period opens, millions of potential claimants will be eligible to file. Keeping an eye on key dates and acting quickly is the best way to make sure you don’t miss out on your payment.
Are you planning to file a claim or have questions about the process? Share your thoughts or experiences below to help others navigate the settlement.
