Cash App has agreed to a settlement agreement valued at $12.5 million to resolve allegations it violated Washington law by sending unsolicited referral text messages as part of its referral program. The lawsuit claimed Cash App’s marketing strategy crossed legal boundaries under the Washington Commercial Electronic Mail Act and the Consumer Protection Act, raising serious questions about consumer protection law in the digital age.
Background of the Lawsuit
The complaint alleged that Cash App encouraged users to share an App referral program text to their contacts. This referral program included pre-filled messages that were sent without consent, leaving many Washington residents frustrated.
The lawsuit, Bottoms v. Block Inc., was filed in the U.S. District Court for the Western District of Washington and reviewed by a Washington federal judge. Plaintiffs argued that the practice violated both the Washington Commercial Electronic Mail Act and the state’s Consumer Protection Act.
Settlement Terms
While denying wrongdoing, Cash App reached a settlement agreement to provide settlement funds totaling $12.5 million. These funds will be distributed as settlement payments to eligible claimants.
- Eligibility: Washington residents who received an App referral program text or referral text message between November 14, 2019, and August 7, 2025.
- Proof Required: A valid phone number and confirmation the messages were received without prior consent.
- Claim Forms: Claimants must complete official claim forms to participate in claim processing.
The settlement administrator is tasked with ensuring compliance, managing settlement administration, and providing updates through the official settlement notice.
Important Deadlines
- Claim Deadline: October 27, 2025
- Exclusion/Objection deadline: October 27, 2025
- Final hearing: December 2, 2025
To receive a settlement payment, claimants must SUBMIT CLAIM online via the settlement website or by mail. The settlement administrator contact information is provided on Bottoms Text Settlement.
Claim Process
Consumers can file a claim online through the settlement portal. The process requires:
- Completing claim forms with the phone number tied to the referral text message.
- Confirming eligibility as a Washington resident.
- Attesting under penalty of perjury that the texts were received without consent.
The settlement administrator oversees claim processing and provides updates. For assistance, individuals can reach out to the settlement administrator contact information provided in the notice.
Estimated Payments
Each claimant is expected to receive a pro rata cash payment estimated between $88 and $147. The exact amount depends on the total number of claims filed and the costs of settlement administration.
Payments will come from the settlement funds established under the settlement agreement.
Broader Implications
This lawsuit demonstrates how quickly digital marketing can cross into violations of consumer protection law. Incentivizing users with a referral bonus through a referral program may encourage growth, but without proper safeguards, it risks breaking statutes like the Consumer Protection Act.
Regulators, including bodies like the Consumer Financial Protection Bureau, have stressed the importance of clear consent in financial marketing. This case serves as a warning for companies across industries.
Role of Settlement Oversight
The settlement administrator plays a critical role in ensuring fairness. From distributing the official settlement notice to handling claim processing and responding to questions, their function ensures transparency.
For any issues, claimants can consult the settlement administrator contact information directly or visit Claim Depot, a portal where individuals often track open settlements.
Conclusion
At Ted Law Firm The Cash App class action settlement represents more than financial compensation. It affirms that Washington law protects consumers from spam-like practices, whether through email or referral text messages. We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg. By reaching a settlement agreement, Cash App avoids further litigation but also highlights the importance of respecting consumer protection law in marketing.
