Cash App and its parent company, Block Inc., have recently been involved in a significant legal battle over the unauthorized sending of referral messages through their “Invite Friends” feature. The lawsuit, filed in Washington State, claimed that Cash App violated consumer protection laws by sending unsolicited messages to users without their consent. As a result, Cash App has agreed to a $12.5 million settlement to compensate affected customers.

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Cash App Class Action Settlement Payment Status
The class action lawsuit was filed against Cash App in Washington State, accusing the company of forwarding referral messages to users without their consent. These messages were part of a referral program, but the plaintiffs argued that they violated several consumer protection laws. Specifically, the allegations involve violations of the following:
- Telephone Consumer Protection Act (TCPA)
- Washington Consumer Protection Act
- Washington Consumer Electronic Mail Act
These laws are designed to protect consumers from unsolicited communications, and the lawsuit claims that Cash App’s actions infringed upon these protections by sending out referral messages without the recipients’ approval.
Settlement Amount and Payment Process
To avoid a lengthy court battle, Cash App agreed to a $12.5 million settlement. The settlement will be distributed among affected customers, but there are specific details regarding how the payment will be processed:
- Total Settlement Amount: $12.5 million
- Eligible Consumers: Those who received unsolicited referral messages from Cash App.
- Compensation Estimate:
- 100,000 claims: Approximately $125 to $147 per person.
- 200,000 claims: Approximately $88 to $110 per person.
- 500,000 claims: Approximately $50 or less per person.
As the number of claims rises, the compensation amount per individual may decrease.
Who Will Receive the Settlement?
To be eligible for compensation under this settlement, you must meet the following criteria:
- Residency: Must be a resident of Washington State.
- Referral Message: You must have received an unsolicited referral message from Cash App through the “Invite Friends” feature.
- Area Code: The mobile number that received the message must be associated with a Washington area code.
- Claimant: Only those who directly received the unauthorized referral message can file a claim.
How to Claim Your Settlement?
Eligible individuals can file a claim by following these steps:
- Monitor Official Notices: Stay alert for updates and announcements regarding the official settlement claim website.
- Ensure Your Phone Number Has a Washington Area Code: Verify that your phone number meets the requirements for eligibility.
- Submit Your Claim: Once the official claim website is live, submit your claim with the necessary information.
Ways to Receive Your Payment
Once your claim is verified, you will receive your payment in one of the following methods:
- Online Transfer via PayPal
- Direct Deposit to a Bank Account
- Paper Check
You will be able to select your preferred payment option when submitting your claim.
Cash App’s Position and Legal Dispute Status
It’s important to note that Cash App has not admitted to any wrongdoing or criminal activity. The company maintains that they did not commit any illegal acts, but they opted to settle the case to avoid a prolonged legal battle and potentially higher penalties.
This case serves as a reminder about consumer rights in the digital age, where privacy and data protection are becoming more critical. The lawsuit underscores the importance of transparency and consent, especially when dealing with customer data.
Why is This Case Important?
This lawsuit is significant for several reasons:
- Consumer Empowerment: It reinforces that consumers can take legal action when their privacy is violated, even by large tech companies.
- Corporate Responsibility: Companies are now on notice that they must operate transparently and ethically, especially when using personal data for marketing purposes.
- Data Privacy Awareness: This case highlights the ongoing importance of safeguarding consumer data and respecting their right to consent before communication.
FAQs
Why was Cash App sued in Washington?
Cash App was sued for sending unsolicited referral messages through its “Invite Friends” feature, which violated consumer protection laws in Washington State.
How much is the settlement amount?
The settlement amount is $12.5 million, which will be distributed among affected individuals.
Who qualifies to receive compensation from the settlement?
Residents of Washington State who received unauthorized referral messages from Cash App are eligible for compensation.
Do I need to file a claim to receive my compensation?
Yes, you will need to submit a claim through the official settlement website to receive your payment. No claim form is required, but you must update your payment preferences.
How will I receive my payment?
Payments will be made via PayPal, direct deposit, or paper check, depending on your preference when filing the claim.