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Washington State residents who received Cash App referral messages between 2019 and 2024 may now qualify for a payout of up to £109 ($147) as part of a £9.3 million ($12.5 million) settlement.

The agreement follows a class action lawsuit against Block Inc., the parent company of Cash App, over allegations of violating state consumer protection and electronic communication laws. Eligible claimants will soon be able to file for compensation online. Here's what users need to know.

Why Cash App Is Paying $12.5M in Referral Lawsuit Settlement

The lawsuit stems from Cash App's 'Invite Friends' programme, which allegedly sent unsolicited promotional text messages to individuals in Washington without obtaining their consent. The case, filed by Washington resident Kimberly Bottoms in November 2023, accused Cash App of breaching the Washington Consumer Protection Act and the Washington Commercial Electronic Mail Act.

The promotional texts were part of a referral scheme that encouraged users to invite others in exchange for cash rewards. However, many recipients claimed they had never opted in or agreed to receive such marketing messages. The lawsuit focused on these privacy violations and the lack of user authorisation.

Who Can Claim from the Cash App Settlement?

The class includes individuals who:

  • Lived in Washington State
  • Received one or more unsolicited Cash App referral text messages
  • Were contacted between 14 November 2019 and an as-yet-undetermined end date
  • Did not give prior consent to receive such messages

Current Cash App users are not the only ones eligible. Anyone who received these texts in Washington, even without having an account, may qualify, according to CNET.

How Much Money Will You Get from the Cash App Settlement?

The total settlement amount is $12.5 million, but this figure also covers legal fees and administrative costs. Individual compensation is estimated to range between £65 ($88) and $147, depending on the number of valid claims filed.

Example scenarios:

  • If 100,000 valid claims are filed, each claimant may receive up to $147
  • If 200,000 claims are received, the payout may drop closer to $88 per person

Claimants can choose to receive their compensation via Venmo, PayPal, or a mailed cheque.

How to File a Claim and What You Need

The official claims portal has not yet been launched, but eligible individuals will be notified through email, SMS, or post when it becomes available. Once the site goes live, claimants will be required to:

  • Enter the Washington phone number that received the messages
  • Confirm they received unsolicited promotional messages
  • Select a preferred payment method for receiving funds

There is no requirement to prove Cash App account ownership. However, submitting your claim promptly is advised once the portal opens. The deadline for filing is expected to be announced in the coming weeks.

What the Cash App Referral Settlement Means for Fintech Companies

This settlement follows growing legal scrutiny of Cash App's privacy and security practices. Block Inc. has faced multiple investigations and enforcement actions in recent years, including:

  • A £11 million ($15 million) settlement in 2024 related to a data breach
  • A £59 million ($80 million) penalty from state regulators in January 2025 for anti–money laundering failures
  • A $175 million enforcement action from the Consumer Financial Protection Bureau over compliance gaps

The Cash App referral lawsuit highlights the growing risks fintech platforms face when using aggressive marketing practices without user consent. It also reflects tightening regulatory oversight over how personal data is used in promotional campaigns.

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