A short, friendly text promising five free dollars doesn’t usually sound like the start of a class-action lawsuit. But in Washington state, that exact message helped trigger a legal fight that’s now ending with a $12.5 million settlement—and real money on the table for thousands of residents.
Cash App’s parent company, Block, Inc., has agreed to the deal to resolve claims that its “Invite Friends” referral feature enabled users to send unwanted promotional text messages without consent, in violation of Washington law. If the settlement gets final court approval, eligible recipients could see payments landing in the ballpark of $88 to $147.
What the lawsuit against Cash App was about
The case, Bottoms v. Block, Inc., was filed in U.S. District Court for the Western District of Washington and centered on Cash App’s referral system. Plaintiffs argued that Block “substantially assisted” users in sending unsolicited referral texts—messages that qualify as commercial electronic communications under Washington’s Commercial Electronic Mail Act (CEMA).
The lawsuit also alleged violations of the state’s Consumer Protection Act, claiming the practice harmed residents by exposing them to spam-like messages they never agreed to receive.
At the heart of the case was a familiar text many people have seen:
“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.”
According to the complaint, Cash App users could send these messages through the app’s referral tools, but the recipients had not always given prior consent—something Washington law takes seriously.
More details on CEMA and consumer protections are outlined by the Washington State Legislature at https://leg.wa.gov and the Washington Attorney General’s Office at https://www.atg.wa.gov.
Block denies wrongdoing—but agrees to settle
Block, formerly known as Square Inc., has been consistent on one point: it denies any wrongdoing.
In the settlement agreement filed with the court, the company stated it “has complied with all applicable state and federal laws” and argued the lawsuit “is not well grounded in law or fact.” Importantly, the settlement does not include any admission of liability.
Still, Block agreed to put $12.5 million on the table to bring the case to a close and avoid prolonged litigation. That’s a common move in large class actions, especially when the cost and uncertainty of continuing to fight outweigh the benefit of a clean exit.
How the $12.5 million settlement would be split
If the judge signs off, the settlement will create a single fund to cover several buckets of costs.
Here’s how that money is expected to be used:
| Use of funds | Description |
|---|---|
| Class member payments | Cash payouts to eligible Washington residents |
| Administrative costs | Processing claims and distributing payments |
| Attorneys’ fees | Compensation for class counsel |
| Litigation expenses | Court and case-related costs |
After those deductions, remaining funds will be distributed to approved claimants. Based on current estimates, individual payments are expected to range from about $88 to $147, depending on how many people submit valid claims.
The settlement paperwork is on file with the U.S. District Court for the Western District of Washington, whose procedures are detailed at https://www.wawd.uscourts.gov.
Who qualifies for a payment?
Eligibility is fairly specific, but broad enough that many Washington residents may qualify without realizing it.
You may be eligible if:
- You received a Cash App referral text message between Nov. 14, 2019, and Aug. 7, 2025
- You were a Washington resident at the time
- You did not clearly consent in advance to receiving the message
Importantly, you do not need to be a Cash App user yourself. Receiving the referral text is the key factor.
Eligible individuals must submit a claim form by Oct. 27. Anyone who does nothing will not receive payment and will also give up the right to sue Block over similar claims in the future.
What happens next in court
The settlement is not final yet.
A fairness hearing is scheduled for Tuesday, Dec. 2. At that hearing, the judge will review whether the agreement is fair, reasonable, and adequate for the class. If approved—and assuming no appeals delay the process—payments would be distributed after the approval becomes final.
This timeline is typical for class actions, where even uncontested settlements can take months to fully wrap up.
Why Washington law matters here
Washington is one of the stricter states when it comes to unsolicited electronic communications. Its Commercial Electronic Mail Act doesn’t just target companies that send spam directly—it can also reach businesses that “assist” or enable others to do so.
That broader language is what made this case viable in the first place. Even though individual users technically sent the texts, plaintiffs argued Cash App provided the tools, incentives, and infrastructure that made the messages possible.
The case may serve as a cautionary tale for other tech platforms that rely on viral referral programs to drive growth.
The bigger picture for tech companies and consumers
Referral programs are everywhere. Free money, promo codes, and “invite a friend” bonuses are baked into the DNA of modern apps. But this settlement highlights a growing legal tension: convenience versus consent.
For consumers, the takeaway is simple. If you received unwanted promotional texts in Washington, you may have a check coming your way—if you file a claim.
For tech companies, the message is louder. Even indirect involvement in unsolicited messaging can carry legal risk, especially in states with aggressive consumer protection laws.
FAQs
Q. Do I need to be a Cash App user to qualify?
No. You only needed to receive a Cash App referral text while living in Washington.
Q. How much money will I receive?
Estimated payments range from $88 to $147, depending on how many valid claims are submitted.
Q. What if I ignore the settlement notice?
You won’t receive payment and you’ll give up the right to bring related claims in the future.
Q. Did Block admit it broke the law?
No. Block denied all wrongdoing and agreed to settle without admitting liability.
Q. When will payments be sent out?
If approved, payments will be distributed after the court’s final approval and once any appeals are resolved.
