$147 Payment for Everyone – The last few weeks are full of discussions that have been going on all around Washington State, be it social media group chats or Reddit discussions to consumer forums. The issue: Did Cash App actually agree to make a payment of millions of dollars to send spam messages? The image has now become far more precise. Block Inc., which is the parent company of Cash App has settled a significant class-action lawsuit by paying 12.5 million dollars. The case claimed that the company was texting millions of Washington consumers unsolicited referral texts and without their permission.
This case, Bottoms v. The case of Block Inc., has become one of the brightest examples of conflicting interests between the modern fintech marketing practices and rigorous laws on electronic communications. The number of Washington phone numbers that could be part of the case is estimated to be almost 2 million and the millions of residents can get payout as well when the claims process is initiated.
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Why Cash App was forced to pay such a huge check of 12.5 million?
The seed of the lawsuit is in the Invite Friends referral program of Cash App. This was developed to attract new users as the current ones could invite their friends to download the app. The issue however occurred when such texts were forwarded to individuals against their will.
The Washington law is so strict in particular. In this case, unsolicited electronic text messages are more than an annoyance, legal violation.
The complaint purported that Cash App:
- Sent out promotion messages without permission.
- Applied an automated referral system.
- Breach of Consumer Electronic Mail Act and Consumer Protection Act of Violated Washington State.
Even though all the accusations made against Block Inc. are rejected, the company chose to settle so as not to incur an expensive and protracted court case.
What would Washington consumers get?
The whole amount of the settlement of 12.5 million covers several expenses- payments to the people who deserve the money, administrative, notice, and attorney fees as well as the special award to the named plaintiff. It is pegged that every eligible person is approximated to obtain a sum of about $88 to 147. This will be based on the overall quantity of individuals making a claim.
Key details are as follows:
- Settlement sum: $12.5 million.
- Estimated number of classes: The number of classes is estimated to be 2 million phone numbers.
- Approximated charges: $88-147/per capita.
- Eligibility: Washington residents that were sent unsolicited Cash App referral messages.
- Acceptance of payment: Check, PayPal, Venmo, or electronic transfer.
Like in most cases involving class-action, the individual compensation can be reduced in case many claims are presented.
Who qualifies as a recipient of this payment?
The eligibility is very easy and has two major criteria:
- Your cell phone number has to be located in Washington State.
- You have to have received an unsolicited Cash App referral text message between November 14, 2019, and the last cutoff date (which has not yet been determined by the court).
Notably, there is no official claims site that is online. One should not use any site that purports to start the claims process. The official site will only be legal after it has been legally sanctioned by the court.
What will be the method of notifying the eligible individuals?
After the court accepts the further actions, consumers will be informed in a variety of ways:
- Emails will be dispatched to persons who have addresses on file.
- The post cards will be sent to physical addresses which are confirmed.
- Internet literature will be provided to those consumers that cannot be reached directly.
- Payments can as well be made electronically, which is a convenient method to consumers of the modern digital era.
Why is such settling significant nationally?
Despite the fact that this case is not that widespread in the United States, its implications may extend to the fintech industry in the whole state of Washington. Cash App experienced various significant regulatory problems in the last few years, such as:
- In 2024, the CFPB fined it 175 million dollars because of poor levels of fraud protection.
- In 2023, it was involved in a data breach involving its investment platform to the tune of a $15 million settlement.
The case has delivered a strong message of the fact that fintech companies should not rely on aggressive user acquisition approaches, known as growth hacking. Unsolicited text messages have now been the subject of equal seriousness in courts, as robocalls.
Will the claims website be live?
Not yet–and it is all natural.
Class-action settlements of large magnitude involve a number of steps:
- Initial approval hearing.
- Official settlement documents are issued.
- Launch of the claims website
- Process of distributing notices.
- Claims submission period
- Final approval hearing
- Payment distribution
The present position is between the first and the second stage. This means it’s wise to wait. After receiving the approval of the court:
- A formal site is going to be launched.
- Notices will be sent
- And a qualified settlement administrator will be hired.
Up to that point, it may be dangerous to share your information on any unofficial site.
Fact Check: Does this settlement actually hold?
Using the publicly available documents and court filings, one can assume the following:
- Yes, Bottoms v. Block Inc. is a true federal case.
- Yes, both the parties have accepted an offered settlement of 12.5 million.
- No, it has not been granted yet by the court thus no payments have been given. This cannot be done.
- No, the claims site is not present so far.
Hence, customers are advised to beware and avoid fraudulent sites.
FAQs
Q. What is the Cash App spam text settlement about?
A. It’s a proposed $12.5 million settlement claiming that Cash App sent unsolicited referral text messages to Washington residents.
Q. Who is eligible to receive a payment?
A. Anyone with a Washington State phone number who received an unwanted Cash App invite text between November 14, 2019, and the final cutoff date.
Q. How much money can individuals receive?
A. Eligible consumers may get around $88 to $147, depending on how many people file claims.
