One of America’s well-known digital wallets, Cash App, has been making news headlines due to spam text messages. This app, which allows users to send, receive, and save money, was forced to pay out $12.5 million. Many users were affected by the text messages that the app sent, which violated a law. Users are encouraged to check if they are eligible to receive this big cash payout.
Details behind this situation
Cash App is a mobile app that is generally used to send or receive payments, a platform where users can access their debit card, save money, and even invest in stocks. Users can use this platform to even apply for personal loans or file their taxes. This digital application was launched by Block, Inc. back in 2013. It has been found that the application reported 57 million users and $283 billion in annual inflows, as of 2024.
With all this being said, some of the Cash App users may be able to receive up to $147 in free cash. This possible payout for some users forms part of a new class action lawsuit against the company. The money after Cash App made an agreement to pay $12.5 million in a settlement. This settlement is to resolve the claims being made that company violated a law by sending unsolicited commercial text messages to customers.
Lawsuit against Cash App
As stated by the Top-Class Actions, this specific lawsuit alleged that Cash App incentivized users to send pre-filled text messages to their respective contacts, without the recipients’ consent. This lawsuit was filed in Washington, the capital city of the United States. The city has a specific law, barring individuals and companies from sending spam text messages to the state residents without their consent.
In addition, it has been stated that the company has not admitted any wrongdoing in this particular case. However, the company did agree to a settlement to resolve the allegations and to clear the well-known application’s name.
The company did not immediately respond to the allegations made against it. Instead, the company stated in court filings that it did not provide “substantial assistance” to the app’s users sending text messages through the “Invite Friends” option. According to the company’s court filling, “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.”
Who is eligible to receive a payout?
In order for a user to know if they are eligible to receive a settlement payout, there are certain requirements that needs to be adhered to. Users must have received a Cash App referral text messages between November 14, 2019, and August 7, 2025. An example of this text message would be to Invite Friends that read as follow: “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. FVRJ1PH.”
Also, another requirement that should be looked at is the user should have been a Washington resident at the time they have received that text message. In addition, eligibility further requires users did not affirmatively and clearly provide their consent to receive these text messages in advance.
Some important information to keep in mind is that those individuals who are eligible, should submit a claim form by October 27, 2025, to ensure they receive payment. For each settlement class member, the estimated payment is set to be between $88 and $147. Also, another crucial aspect that claimants should note is that the amount received will be depended on the number of users who submitted their claim. Those individuals who are eligible to receive a payout, can file a claim online or by mail.