Cash App's parent company, Block, Inc., has agreed to a $12.5 million settlement to resolve a class action lawsuit, Bottoms v. Block, Inc., which alleged the company violated Washington state privacy laws. The lawsuit claimed that Cash App assisted users in sending unsolicited promotional and referral text messages through its "Invite Friends" feature without obtaining prior consent from the recipients. While Block, Inc. denies any wrongdoing or violation of the law, the court granted final approval of the settlement on December 2, 2025, to provide restitution to affected consumers and avoid the costs of continued litigation.
Who Qualifies for the Cash App Settlement?
This specific $12.5 million fund is strictly limited to individuals who met the following residency and communication criteria:
- State Residency: You must have been a resident of Washington State at the time you received the communication.
- Qualifying Date Range: You must have received at least one unsolicited Cash App referral or promotional text message between November 14, 2019, and August 7, 2025.
- Lack of Consent: To be eligible, you must not have provided clear and affirmative consent in advance to receive these specific text messages.
- Message Type: Eligible texts typically included pre-filled referral codes inviting non-users to sign up for the app in exchange for a $5 bonus.
Payout Estimates and Award Distribution
The total $12.5 million fund will be used to pay approved claims after court-awarded attorney fees (requested at 25% or $3.1 million) and administrative costs are deducted.
- Estimated Individual Reward: Approved claimants are expected to receive between $88 and $147.
- Pro Rata Adjustments: The final payout amount depends on the total number of valid claims filed. If participation is low, payments could reach the maximum $147 cap; if higher, they may fall closer to the $88 estimate.
- Equal Shares: Every eligible claimant will receive the same proportional amount from the net settlement fund, regardless of how many individual spam texts they received.
- Nontaxable Status: The settlement is considered compensation for privacy issues and is generally viewed as nontaxable.
Status of Claims and Next Steps
While some reports indicated an earlier cutoff, updated claim processing continues through the end of the year.
- Claim Deadline: The final window to ensure your claim is included in the approved distribution is December 31, 2025.
- Deficiency Notices: If you submitted a claim but it was marked as incomplete, you must respond to any Claim Deficiency Notices immediately through the official portal to avoid rejection.
- Payment Method: Eligible users will receive their funds via the method selected during the claims process, such as direct deposit, PayPal, Venmo, or a mailed paper check.
- Address Changes: If you have moved since filing your claim, you are responsible for updating your contact information with the settlement administrator to ensure your payment reaches you.
Timeline for Final Payouts
With the court's final approval granted on December 2, 2025, the settlement administrator is now in the final stages of processing valid claims.
- Payment Window: Direct payouts are expected to begin in early 2026, with most digital distributions estimated between February and May 2026.
- Monitoring: Claimants should monitor their provided email addresses for official communications from the administrator and check the official website, BottomsTextSettlement.com, for updates.
- Legal Finality: Because the settlement is now final, participants have given up their right to sue Block, Inc. individually for any issues related to these unsolicited texts.
