Unwanted promotional text messages have become one of the most common complaints among mobile phone users in recent years. While many people assume such messages are just a minor nuisance, consumer protection laws treat them seriously—especially when companies fail to obtain proper consent. This concern came to the forefront with the resolution of the Cash App referral text lawsuit, a case that accused the popular payment platform of allowing referral messages to be sent without clear authorization.
The lawsuit drew attention not only because of the company involved, but also because it highlighted how digital marketing tools can unintentionally cross legal boundaries. With the case now resolved and payments expected to reach eligible claimants, many consumers are trying to understand what happened, who qualified, and how the $147 compensation figure was determined.
The Cash App referral text lawsuit centers on claims that promotional referral messages were sent to individuals who never agreed to receive them. These messages were tied to Cash App’s “Invite Friends” feature, which allowed users to send referral links to contacts. According to the lawsuit, this system resulted in automated texts being delivered to phone numbers without proper consent, raising concerns under state consumer protection laws.
Although Cash App’s parent company denied wrongdoing, it chose to resolve the matter through a financial settlement. This approach allowed the company to avoid prolonged litigation while providing compensation to affected individuals. For consumers, the settlement serves as an important reminder that even indirect marketing messages must comply with strict consent requirements.
Overview of the Cash App Referral Text Lawsuit Settlement
| Key Detail | Information |
|---|---|
| Case Name | Bottoms v. Block, Inc. |
| Company Involved | Cash App (operated by Block, Inc.) |
| Settlement Amount | $12.5 million |
| Maximum Individual Payment | Up to $147 |
| Eligible State | Washington |
| Covered Period | November 14, 2019 – August 7, 2025 |
| Claim Deadline | October 27, 2025 |
| Payment Timeline | Expected in early 2026 |
Background of the Cash App Referral Text Lawsuit Settlement
The lawsuit was filed on behalf of Washington state residents who allegedly received unsolicited referral texts linked to Cash App. Plaintiffs argued that these messages violated state laws designed to protect consumers from unwanted commercial electronic communications.
Unlike spam emails, text messages are considered especially intrusive because they arrive directly on personal devices. Laws in Washington require clear, affirmative consent before commercial text messages can be sent. The plaintiffs claimed that Cash App’s referral system did not adequately ensure such consent was obtained.
Rather than disputing these claims in court, Block, Inc. agreed to establish a settlement fund. This decision did not include an admission of fault but allowed the case to move toward resolution more efficiently.
Who Was Eligible for Compensation
Eligibility for the settlement was narrowly defined. Only individuals who met specific criteria were allowed to submit a claim. First, the person must have received a Cash App referral or promotional text message during the covered time period. Second, they must have been a resident of Washington state at the time the message was received.
Another important condition was consent. Claimants had to attest that they did not knowingly or affirmatively agree to receive such messages. Notably, owning or using a Cash App account was not required. Many eligible individuals had never interacted with the app at all before receiving the text.
This distinction played a major role in the case, reinforcing the idea that consumer consent cannot be assumed simply because a message originates from a friend or contact.
Settlement Amount and Payment Structure
The total settlement fund was set at $12.5 million. From this amount, administrative costs, legal fees, and other expenses will be deducted before payments are distributed to claimants. The remaining balance will be divided among approved claims.
Because the number of valid claims can vary, individual payments are not fixed. Estimates suggest payments will range from approximately $88 to a maximum of $147. If fewer people submitted valid claims, each eligible claimant receives a larger share of the fund.
This structure is common in class-action settlements and ensures that the available funds are distributed fairly among those affected.
How the Claim Process Worked
To receive compensation, eligible individuals were required to submit a claim form by the October 27, 2025 deadline. The form asked for the phone number that received the message, confirmation of Washington residency, and a sworn statement regarding lack of consent.
Claims could be submitted online or by mail through the settlement administrator. Once submitted, each claim undergoes a review process to verify eligibility. Invalid or incomplete claims are excluded, which directly affects the final payment amounts for approved participants.
Those who missed the deadline generally cannot file late claims, as courts rarely reopen settled class actions once deadlines have passed.
When Payments Will Be Sent
After final court approval in December 2025, the settlement entered the distribution phase. Payment processing takes time due to claim verification, fraud prevention, and administrative steps. As a result, payments are expected to be issued in early 2026.
Payment methods depend on what claimants selected during the filing process. Some may receive checks, while others may receive electronic payments. Exact dates can vary, but delays of several weeks or months after final approval are common in settlements of this size.
Why This Settlement Matters
Beyond the money, the Cash App referral text lawsuit sends a clear message about digital privacy and marketing practices. Companies that rely on referral-based growth must ensure their systems comply with consent laws, even when messages are initiated by users.
For consumers, the case reinforces their rights regarding unsolicited communications. It also demonstrates that even brief, automated texts can carry legal consequences if they violate consumer protection statutes.
The settlement may also influence how other apps design referral and promotional tools going forward, potentially leading to stronger safeguards and clearer opt-in processes.
Final Thoughts
The resolution of the Cash App referral text lawsuit highlights the growing scrutiny placed on digital marketing practices. While the individual payout of up to $147 may seem modest, the broader implications are significant. The case underscores the importance of consent, transparency, and accountability in modern communication systems.
For those who qualified and filed a claim, the settlement offers compensation and closure. For everyone else, it serves as a reminder that consumer protection laws continue to evolve alongside technology—and companies are expected to keep up.
