The Cash App settlement has become a major topic in 2025, with thousands of people now checking their eligibility for compensation. The case revolves around claims that Cash App’s referral program sent unsolicited text messages to Washington state residents, sparking a class action lawsuit that led to a multimillion-dollar agreement.
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Background of the Case
The lawsuit alleged that Cash App’s “Invite Friends” referral program encouraged users to send promotional texts to contacts, many of whom had never consented to receive them. Between November 14, 2019 and August 7, 2025, Washington residents received automated messages containing referral codes and incentives to sign up.
The messages were claimed to violate consumer protection laws by being unsolicited and lacking prior affirmative consent. Cash App’s parent company, Block Inc., denied wrongdoing but ultimately agreed to settle to avoid a prolonged legal battle.
Details of the Cash App Settlement
The settlement reached in 2025 totals $12.5 million. It provides cash relief to Washington residents who:
- Lived in Washington during the relevant time period.
- Received one or more “Invite Friends” referral texts from Cash App.
- Did not clearly consent in advance to getting such messages.
Payouts per person are expected to range from $88 to $147, depending on how many valid claims are submitted.
Deadlines and Key Dates
Applicants must act quickly to claim their share of the settlement.
- Claim deadline: October 27, 2025.
- Final approval hearing: December 2, 2025.
Once the court grants final approval, settlement funds will be distributed after deducting legal fees and administrative costs.
How to File a Claim
Eligible individuals must complete a claim form, either online or by mail. The process generally includes:
- Providing the phone number that received the referral message.
- Confirming residence in Washington during the period covered.
- Stating that no prior consent was given to receive such texts.
- Submitting the claim before the October 27 deadline.
Approved claims will be paid once the settlement becomes final. Payments may be issued by check, direct deposit, or another approved method.
What Kind of Messages Qualify
The texts that may qualify for payment often read like invitations, for example:
“Hey, I’ve been using Cash App to send money. Try it with my code and you’ll get $5!”
If you received a similar message and met the residency requirements, you could be eligible to claim part of the settlement.
Why This Settlement Matters
The Cash App settlement highlights broader issues in digital marketing and fintech practices.
- Consent is key: Companies must ensure people agree before receiving referral or marketing messages.
- Cost of non-compliance: Even small promotional programs can result in multimillion-dollar payouts if they breach privacy laws.
- Consumer rights: This case reinforces that unwanted marketing communications can be challenged through legal channels.
Other Legal Pressures on Cash App
This is not the only legal matter facing Block Inc. in 2025. Cash App has also faced settlements related to anti-money laundering compliance and oversight failures. Regulators in multiple states have required the company to strengthen its practices to prevent fraud and improve transparency.
Together, these cases signal that financial technology firms are under increasing scrutiny from regulators, courts, and consumers alike.
What Happens Next
After the December 2, 2025 fairness hearing, the court will decide whether to give final approval to the settlement. If approved, payments will be processed in the following months.
Here’s the likely timeline:
| Event | Date |
|---|---|
| Claim deadline | October 27, 2025 |
| Final court hearing | December 2, 2025 |
| Payments issued | Early 2026 (estimate) |
Who Benefits from This Settlement
The main beneficiaries are Washington residents who received Cash App referral texts without giving consent. However, the broader impact goes beyond individual payouts:
- Consumers gain awareness of their rights regarding unsolicited digital communication.
- Companies in fintech and other industries are reminded to comply with consent laws.
- Regulators see a precedent that marketing practices will be held accountable.
Limitations of the Settlement
While the Cash App settlement provides relief, there are limits:
- It only applies to Washington state residents.
- Only specific referral texts are included.
- The payout depends on the number of valid claims filed, meaning amounts may be lower if participation is high.
Despite these limitations, it remains a significant consumer win.
Final Thoughts
The Cash App settlement shows how consumer protection laws can hold companies accountable for their marketing practices. Washington residents who received unwanted referral texts between 2019 and 2025 may be entitled to compensation, but they must act before the October 27 deadline.
For Cash App, this case is another reminder that compliance and transparency are essential in the fintech space. For users, it’s proof that even small unwanted texts can lead to big legal changes.
Have you received a Cash App referral message during this time period? If so, you may be entitled to a payment—be sure to check eligibility and share your experience in the comments.