Cash App Settlement: 7 Essential Facts About the $12.5M Class Action Payout in 2026
The Cash App settlement — officially known as Bottoms v. Block, Inc., Case No. 2:23-cv-01969-MJP — is a $12.5 million class action lawsuit resolution involving Block, Inc. (the parent company of Cash App) and Washington state residents who received unsolicited referral text messages. Payments of $394.36 per approved claimant began on February 2, 2026, following final court approval on December 2, 2025.
If you received a Cash App spam text message while living in Washington state between November 14, 2019, and August 7, 2025, this guide covers everything you need to know — what the Cash App class action lawsuit alleged, what the settlement covers, the actual payout amounts confirmed after claims were counted, who was eligible, and key dates. Disclaimer: this article is for informational purposes only. It does not constitute legal advice.
1. What Is the Cash App Settlement?
The Cash App settlement resolves a class action lawsuit alleging that Block, Inc. violated Washington state law by enabling its users to send unsolicited commercial text messages through Cash App’s “Invite Friends” referral program.
The lawsuit, filed under the case name Bottoms v. Block, Inc., alleged that Block’s referral system incentivized users to send pre-filled text messages to their personal contacts without first obtaining clear and affirmative consent from the recipients. An example of the type of message at issue reads: “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.”
The plaintiff alleged these messages violated the Washington Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act (CPA) — both of which prohibit sending commercial electronic messages to individuals without prior explicit consent. Block denied any wrongdoing and denied that the lawsuit was grounded in law or fact, but agreed to settle to avoid the cost and uncertainty of further litigation.
2. Cash App Settlement Details: The $12.5 Million Fund
The Cash App settlement details center on a $12.5 million Settlement Fund paid by Block, Inc. The fund is not distributed entirely to claimants — attorneys’ fees, administrative costs, and a service award for the named plaintiff are deducted first.
Plaintiffs’ attorneys at Terrell Marshall Law Group in Seattle sought 25 percent of the settlement, or approximately $3.1 million, in legal fees. Settlement administration costs were handled by EisnerAmper. After deducting fees and costs, approximately $8.7 million remained for distribution to approved claimants.
Settlement Component | Amount |
|---|---|
Total Settlement Fund | $12,500,000 |
Attorneys’ fees (25%) | Approximately $3,125,000 |
Administration costs | Included in deductions |
Net fund for claimants | Approximately $8,700,000 |
Actual payout per claimant | $394.36 (confirmed Feb 2026) |
Settlement administrator | EisnerAmper |
The actual Cash App settlement payout of $394.36 per approved claimant is significantly higher than early estimates of $88 to $147 — reflecting that far fewer than the estimated 5 percent of 1,975,187 class members submitted valid claims by the October 27, 2025 deadline.
3. Cash App Settlement Payout Date: Key Timeline
The Cash App settlement payout date and full timeline from lawsuit filing through payment distribution are confirmed as follows:
- November 14, 2019: earliest date of the alleged unsolicited Cash App referral text messages covered by the lawsuit
- 2023: Bottoms v. Block, Inc. filed in the United States District Court for the Western District of Washington
- June 30, 2025: plaintiff filed motion outlining proposed Cash App settlement details
- July 29, 2025: Preliminary approval of settlement granted by U.S. District Judge Marsha J. Pechman
- August 7, 2025: end of the class period — last date of covered Cash App referral text messages
- October 27, 2025: deadline for class members to submit claims, opt out, or object to the settlement
- December 2, 2025: Final Approval of Class Action Settlement entered by the Court — the settlement became binding
- February 2, 2026: Settlement administrator began distributing payments of $394.36 to approved claimants
Claimants who selected direct deposit or digital wallet payment received funds first. Those who chose payment by check experienced a slightly longer processing time. The official settlement portal, BottomsTextSettlement.com, allowed claimants to check their payment status using their claim ID or phone number.
4. Cash App Settlement Eligibility: Who Qualified?
Cash App settlement eligibility was defined precisely in the Settlement Agreement. You were eligible to be a member of the Settlement Class if you met all three of the following conditions:
- Condition 1 — Received the text: you received a Cash App referral program text message between November 14, 2019, and August 7, 2025
- Condition 2 — Washington residency: you were a resident of Washington state at the time you received the Cash App referral text message
- Condition 3 — No prior consent: you did not clearly and affirmatively consent in advance to receive the Cash App referral program text message
Importantly, you did not need to be a Cash App user or account holder to be eligible. If your phone number was in Block’s records of Invite Friends texts sent to non-consenting Washington recipients, you qualified regardless of whether you had ever used Cash App. The estimated class size was approximately 1,975,187 Washington residents who received these messages during the covered period.
5. What the Cash App Unsolicited Text Message Settlement Alleged
The Cash App unsolicited text message settlement arose from Cash App’s “Invite Friends” referral program, which was designed to grow Cash App’s user base by incentivizing existing users to recruit their personal contacts.
The referral program worked by generating a pre-written promotional text message that an existing Cash App user could send to their contacts with one tap. These messages referenced a personal referral code and offered the recipient $5 to sign up. The lawsuit’s core allegation was that the system transformed regular Cash App users into unwitting commercial marketers — sending promotional messages to recipients who had never consented to receive commercial communications from Cash App or from Block, Inc.
The Washington Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act (CPA) both require that commercial electronic messages be sent only with the prior clear and affirmative consent of the recipient. The lawsuit alleged that Cash App’s automated referral flow bypassed this consent requirement by enabling bulk message sending without confirming that each recipient had agreed to receive commercial texts.
6. The Second Cash App Settlement: Data Security Breach
The Cash App spam text settlement (Bottoms v. Block) is separate from a second, distinct Cash App settlement related to a 2021 data security breach.
In 2021, a former Cash App employee downloaded internal reports containing customer data without authorization. The breach potentially affected approximately 8.2 million current and former Cash App Investing customers whose names and brokerage account numbers were exposed. A separate class action settlement at CashAppSecuritySettlement.com was established to compensate affected users for unreimbursed losses, unauthorized charges, and lost time related to the data breach.
These are two entirely separate legal matters with separate settlement funds, separate eligibility criteria, and separate claim processes. The $12.5 million spam text settlement covered Washington residents who received unsolicited referral texts. The data security settlement covered current and former Cash App Investing users nationwide who were affected by the 2021 breach.
Settlement | Spam Text (Bottoms v. Block) | Data Security Breach |
|---|---|---|
Case basis | Unsolicited referral texts | 2021 employee data theft |
Who is eligible | Washington residents only | US Cash App Investing users |
Settlement amount | $12.5 million | Separate fund |
Official website | BottomsTextSettlement.com | CashAppSecuritySettlement.com |
7. What Happens After the Cash App Settlement: Block’s Obligations
As part of the Cash App class action settlement, Block, Inc. agreed to changes in how the Invite Friends referral program operates going forward — beyond simply paying the settlement fund. These prospective relief provisions are part of why plaintiffs’ attorneys described the settlement as favorable.
Block agreed to enhanced controls over its referral messaging system for a period of three years following the settlement’s effective date. These controls are intended to ensure that the referral flow includes more robust consent mechanisms before sending commercial text messages on behalf of Cash App users. The specific technical requirements are detailed in the Settlement Agreement available through the official settlement website.
Block’s agreement to these operational changes — without admitting wrongdoing — is consistent with how large tech company settlements typically operate. The company maintains that it abided by all applicable laws while simultaneously agreeing to modify practices as part of the settlement resolution.
Frequently Asked Questions: Cash App Settlement
How much is the Cash App settlement payout per person?
The confirmed Cash App settlement payout is $394.36 per approved claimant. Payments began on February 2, 2026, following final court approval on December 2, 2025. Early estimates placed the per-person payout at $88 to $147 based on an assumption that 5 percent of 1,975,187 class members would file claims. The actual payout was significantly higher because fewer eligible Washington residents submitted valid claims by the October 27, 2025 deadline.
Who is eligible for the Cash App spam text lawsuit settlement?
Cash App spam text settlement eligibility required three conditions: (1) receiving a Cash App Invite Friends referral text message between November 14, 2019, and August 7, 2025; (2) being a Washington state resident when the text was received; and (3) not having clearly and affirmatively consented to receive Cash App promotional texts. You did not need to be a Cash App account holder to be eligible — only to have received the referral text on your Washington phone number.
Can I still claim the Cash App settlement?
No. The deadline to submit a claim in the Cash App settlement was October 27, 2025. Claims are now closed. If you submitted a claim before the deadline, your payment of $394.36 would have been processed beginning February 2, 2026. Check your claim status at BottomsTextSettlement.com. If you did not submit a claim by the deadline, you are bound by the settlement terms but forfeit your right to individual compensation from this settlement fund. For more consumer and finance guides, visit wpkixx.com.
Important Legal Disclaimer
This article is for informational purposes only and does not constitute legal advice. Settlement details, eligibility determinations, and payment calculations are based on publicly available court documents, the official settlement website, and verified news sources. For legal questions about your specific situation, consult a qualified attorney. All claim deadlines referenced in this article have passed. For the most current status information, visit the official settlement portal at BottomsTextSettlement.com.
Final Thoughts
The Cash App settlement in the Bottoms v. Block class action resolved a significant consumer privacy dispute involving unsolicited text messages sent through Cash App’s Invite Friends referral program. The $12.5 million fund and $394.36 per-person payout — significantly higher than early estimates due to a lower-than-expected claim volume — represent a meaningful outcome for Washington state residents who were subjected to commercial texts without their consent. Block’s agreement to three years of enhanced referral program controls provides ongoing consumer protection beyond the immediate financial compensation. For more consumer rights and finance guides, visit wpkixx.com.
