By Rightful Advice 
A federal court has approved a $12.5 million class action settlement resolving claims that Cash App, operated by Block, Inc., facilitated the transmission of unsolicited commercial text messages to Washington residents through its “Invite Friends” referral program. The cash app’s $12.5 million payout addresses allegations that these messages violated Washington state consumer protection laws. As of April 2026, distribution of payments to approved class members is underway following final court approval in December 2025.
This settlement provides compensation to eligible Washington residents who received the texts without prior consent. It highlights ongoing regulatory scrutiny of digital marketing practices by financial technology companies. The agreement does not constitute an admission of wrongdoing by Block, Inc.
Background of the Lawsuit
The case, Bottoms v. Block, Inc., was filed in the United States District Court for the Western District of Washington under Case No. 2:23-cv-01969-MJP. Plaintiff Kimberly Bottoms alleged that Block, Inc. substantially assisted Cash App users in sending unsolicited referral texts as part of the app’s “Invite Friends” program. These messages typically encouraged recipients to download Cash App using a referral code, often promising a small cash incentive to the sender.
The lawsuit claimed these practices violated two specific Washington statutes: the Commercial Electronic Mail Act (CEMA), which regulates unsolicited commercial electronic messages, and the Washington Consumer Protection Act (CPA), which prohibits unfair or deceptive business practices. Under established legal principles, CEMA requires clear and affirmative consent before sending commercial texts, while the CPA provides a private right of action for consumers harmed by violations of other statutes.
Class action procedures under Federal Rule of Civil Procedure 23 allowed the case to proceed on behalf of a defined group of affected individuals rather than requiring separate lawsuits. This mechanism promotes judicial efficiency and ensures consistent outcomes in cases involving widespread but relatively small individual harms, a common scenario in consumer protection litigation involving mobile apps and digital communications.
Block, Inc. denied the allegations, maintained that it complied with all applicable state and federal laws, and agreed to the settlement to avoid the costs and uncertainties of continued litigation, including potential appeals.
Terms of the Settlement Agreement
Under the settlement agreement, Block, Inc. agreed to establish a $12,500,000 fund. This amount covers payments to class members, notice and administration costs, court-awarded attorneys’ fees and expenses, and a service award to the class representative. The court granted preliminary approval in July 2025 and final approval on December 2, 2025, after a fairness hearing. The judge determined the settlement was fair, reasonable, and adequate, consistent with standards applied in federal class action jurisprudence.
The fund allocation follows standard class action settlement practices: after deducting approved fees and costs, the remainder is distributed to approved claimants on a pro-rata basis. Initial estimates projected individual payments between $88 and $147, depending on the number of valid claims. Actual payments to approved class members total $394.36 per accepted claim, reflecting a higher per-person distribution after final claims review.
Eligibility Criteria for the Cash App $12.5 Million Payout
To qualify for a payment from the cash app $12.5 million payout, individuals must meet all three criteria established by the court-approved settlement:
- They received one or more Cash App referral program text messages between November 14, 2019, and August 7, 2025.
- They were a resident of Washington state at the time the text message was received.
- They did not provide clear and affirmative consent in advance to receive such messages from Cash App.
Typical qualifying messages include language such as: “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.” These referral texts differ from transaction-related notifications or messages where the recipient had previously interacted with Cash App.
Eligibility does not require proof that the recipient opened or responded to the message, only that it was received. Individuals with Washington telephone area codes who received such texts during the class period are generally included, subject to verification through claims data.
Persons who opted out of the settlement or failed to submit a timely claim are excluded from receiving payment but retain no further rights to pursue these specific claims against Block, Inc.
Claims Process and Important Deadlines
The claims period opened after preliminary approval and closed on October 27, 2025. Class members submitted claims online via the official settlement website or by mail. The process required basic verification information, such as contact details and confirmation of receipt of a qualifying text.
The opt-out and objection deadlines also expired on October 27, 2025. Following final approval in December 2025, the settlement administrator began processing claims and issuing payments.
Latest Update (2026): Payment Distribution Status
As of April 2026, the cash app $12.5 million payout is in the active distribution phase. Payments to approved claimants commenced on February 2, 2026, at the rate of $394.36 per accepted claim. The administrator has issued both electronic payments and paper checks.
According to the official settlement website update dated April 1, 2026, all failed digital payments and returned mail checks have been reissued as paper checks. Reissue requests submitted by March 18, 2026, have been processed and mailed, with most checks expected to arrive by April 8, 2026. Class members who have not received their payment by that date may contact the administrator for status updates.
This timeline aligns with standard post-approval distribution procedures in federal class actions, where administrators handle claims validation, tax reporting (where applicable), and payment logistics.
Broader Legal and Consumer Implications
The settlement underscores the application of state consumer protection laws to modern digital referral programs. Courts have increasingly examined whether companies can be held liable for facilitating user-generated marketing messages, even when the company itself does not directly send the texts. Similar issues arise under the federal Telephone Consumer Protection Act (TCPA), which imposes strict consent requirements for automated calls and texts, though this case relied primarily on Washington statutes.
For businesses, the outcome serves as a reminder of the need for robust consent mechanisms in referral and affiliate marketing programs. Consumer protection regulators and courts emphasize that implied or opt-out consent is often insufficient under statutes like Washington’s CEMA.
For affected consumers, the cash app $12.5 million payout demonstrates how class actions can provide redress for diffuse harms that might otherwise go unaddressed due to the small value of individual claims. It also illustrates the importance of monitoring official court notices and settlement websites rather than relying on unsolicited communications, which may include scam attempts.
Distinguishing from Other Cash App Legal Matters
To avoid confusion, note that this $12.5 million settlement is distinct from other recent Cash App or Block, Inc. matters. These include a separate Consumer Financial Protection Bureau (CFPB) resolution concerning historical customer service practices, under which affected consumers are contacted directly by Cash App with no action required, and a data security class action settlement involving different eligibility criteria and timelines. The cash app $12.5 million payout specifically addresses the Washington unsolicited text claims.
What to Do Next
Eligible class members who submitted timely claims should monitor their mail or bank accounts for the $394.36 payment. Those with questions about claim status or payment delivery may contact the settlement administrator at info@BottomsTextSettlement.com or by phone at 1-877-540-7545.
Consumers who believe they may have received qualifying texts but did not submit a claim cannot recover under this settlement because the deadlines have passed.
This article is for informational purposes only and does not constitute legal advice. Readers should consult the official settlement website at bottomstextsettlement.com or a qualified attorney for advice specific to their situation. All information is based on publicly available court records and official settlement notices as of April 2026.
You may also like: Class Action Lawsuit No Proof: How to Claim Without Receipts