Cash App Class Action Lawsuit Settlement: Full Details, Eligibility, Payouts, and What Users Should Know

The cash app class action lawsuit settlement has quickly become one of the most talked-about legal developments of the year for U.S. consumers. Cash App’s parent company, Block, Inc., has agreed to pay $12.5 million to resolve claims that it violated privacy laws by sending unsolicited promotional text messages through its “Invite Friends” program.

Millions of Cash App users could be eligible to receive payments estimated between $88 and $147, depending on the number of valid claims filed. This settlement not only compensates affected users but also underscores how digital platforms are being held accountable for marketing practices that infringe on consumer privacy.

Below is a complete, expanded breakdown of the lawsuit, the settlement, who qualifies, how to file a claim, and why this case matters to users across the United States.

Why the Lawsuit Was Filed

The class action lawsuit, officially filed in December 2023, accused Block, Inc. (the company behind Cash App) of sending unsolicited “Invite Friends” texts to individuals without their prior consent.

The complaint alleged that Cash App users were encouraged to refer their contacts to the app through SMS invitations. However, the system allegedly did not properly verify whether recipients had agreed to receive these promotional texts. This led to thousands of unwanted messages being sent to people across multiple states, violating both federal regulations—such as the Telephone Consumer Protection Act (TCPA)—and various state privacy laws.

Consumers complained about receiving repeated promotional messages despite never signing up for the service. Attorneys argued that this practice constituted a clear privacy violation and caused inconvenience, annoyance, and in some cases, potential financial consequences for recipients.

Rather than continuing to litigate, Block agreed to settle the lawsuit in July 2025, while denying wrongdoing. The settlement allows eligible consumers to claim monetary compensation without a trial.

Key Details of the Cash App Class Action Lawsuit Settlement

• Settlement Total: $12.5 million
• Estimated Individual Payments: Between $88 and $147, depending on the number of valid claims filed
• Eligibility Period: Messages sent between November 14, 2019, and the end date specified in Cash App’s records
• Final Approval Hearing: Scheduled for December 2, 2025
• Administrator: A third-party settlement administrator will oversee claim verification and distribution

The settlement fund will cover payments to eligible claimants, attorney fees, court costs, and administrative expenses. Whatever remains after those deductions will be distributed equally among approved claimants.

Who Is Eligible to Receive a Payment

You may be eligible to participate in the cash app class action lawsuit settlement if:

• You received one or more unsolicited “Invite Friends” promotional text messages sent through Cash App during the eligible time frame.
• The phone number that received the message is listed in Block’s records as one of the recipients of those texts.
• You submit a valid claim before the official deadline.

You do not need to prove financial harm to qualify. The settlement compensates users for the privacy violation itself, not for monetary loss.

How Much Money Can Claimants Expect

While the exact payment depends on the total number of approved claims, early estimates suggest payouts between $88 and $147 per person.

• If fewer people file claims than expected, payouts may be closer to the higher end of the range.
• If more people file, the payments will be prorated, meaning the settlement pool will be divided evenly among all eligible claimants.
• Payments will be distributed through checks or direct deposits, depending on the method chosen when filing the claim.

How to File a Claim for the Settlement

Filing a claim is a straightforward process, but you must follow the instructions carefully to ensure you receive your payout.

Step 1: Visit the Official Settlement Website

Once it launches, the settlement website will include a claim form, instructions, and deadlines. You should verify that you are on the official site to avoid scams.

Step 2: Fill Out the Claim Form

You’ll need to provide:

• Your full legal name
• Mailing address and email address
• The phone number that received the messages
• A signed declaration confirming the information is accurate

This information will be matched against Block’s internal records to verify eligibility.

Step 3: Submit Before the Deadline

Late submissions will not be accepted. Filing early ensures your claim is processed on time.

Step 4: Wait for Processing and Payment

After the final approval hearing in December 2025, the settlement administrator will begin issuing payments. Distribution typically takes several weeks or months, depending on whether any appeals delay the process.

Why This Settlement Is Significant

This settlement represents more than just a financial payout — it highlights growing legal scrutiny over how digital platforms interact with users.

1. Reinforcing Privacy Rights

The lawsuit centers on the idea that consumers have the right to decide whether they want to receive promotional messages. Sending texts without consent is a direct violation of privacy laws, and this settlement reinforces the importance of those protections.

2. Accountability for Digital Platforms

Cash App is one of the most widely used financial platforms in the U.S., with millions of users. Holding such a major company accountable sets a precedent for other fintech firms to review their marketing practices.

3. Real Compensation for Consumers

While individual payments are modest, they serve as tangible recognition of consumers’ rights being violated. For many users, receiving a settlement check for something they didn’t sign up for is both symbolic and meaningful.

4. Shaping Future Marketing Strategies

The outcome of this lawsuit will likely lead to changes in referral and invite systems across the fintech industry. Companies will need to ensure they comply with federal and state laws to avoid similar lawsuits.

Other Legal and Regulatory Challenges for Cash App

The class action settlement comes amid increased regulatory scrutiny of Cash App and its parent company, Block, Inc. In 2025, Block faced several major enforcement actions, including:

• Anti-Money Laundering Violations: Block paid $80 million in fines to state regulators over alleged deficiencies in its anti-money laundering controls.
• Consumer Protection Penalties: The Consumer Financial Protection Bureau (CFPB) ordered Block to pay over $175 million in combined fines and restitution related to fraudulent transactions and inadequate disclosures.
• Regulatory Settlements in New York: Block also agreed to a $40 million settlement with New York’s financial regulator over compliance issues involving Bitcoin transactions on Cash App.

These regulatory actions highlight a changing environment where fintech companies are being held to the same standards as traditional financial institutions.

Key Dates to Remember

Marking these dates is crucial if you want to ensure your claim is processed in time.

Tips for Filing a Strong Claim

• File early: Don’t wait until the last minute to submit your claim.
• Use the exact phone number that received the messages. Claims will be verified using company records.
• Keep your confirmation number: After filing, save any confirmation email or claim number provided.
• Check the official site regularly: Updates, deadlines, and FAQs will be posted there.
• Watch out for scams: Only file through the official settlement site — not through third-party links or social media posts.

What Happens if You Do Nothing

If you don’t file a claim, you will not receive any money from the settlement. However, you may still be bound by the court’s decision, meaning you give up your right to sue Block, Inc. separately for the same issue. Filing a claim is the simplest way to benefit from the settlement without pursuing your own legal case.

Looking Ahead

The cash app class action lawsuit settlement is a landmark moment for both consumers and the fintech industry. For users, it represents a rare opportunity to receive compensation for unwanted marketing messages and to exercise their privacy rights. For companies, it’s a wake-up call: user consent isn’t optional — it’s legally required.

The settlement process will unfold in the coming months, with payments likely to begin in early 2026 after the final approval. If you think you may qualify, staying informed and filing your claim on time is the best way to make sure you don’t miss out.

Are you planning to file a claim? Have questions about eligibility or payouts? Share your thoughts below and join the conversation.