$12.5 Million Cash App Settlement Approved: A huge lawsuit against Cash App, a widely used mobile payment service has been officially accepted in the United States in a federal court. This is following the complaints over the years by individuals claiming to have received unsolicited promotional text messages by Cash App even after they had not given explicit consent. The readings were connected to the referral or Invite Friends feature of the service that helped to attract users to get others to use the app.
This was a legal case which was initiated in a federal court in Washington state, involving these automated messages. The plaintiffs alleged that they were received by telephone numbers in which the texts were sent without authorization, and even to the recipients who had no cash App account. The case has raised an issue of consumer privacy and the way businesses are managing digital marketing.
Since the settlement has now been accepted those that submitted a valid claim before the deadline are also likely to receive a payment. It is estimated that this amount of money may reach up to $147 per person depending on the number of legitimate claims that are granted and the settlement amount as a whole.
$12.5 Million Cash App Settlement Approved
Instead of going through a lengthy legal battle, the involved parties agreed to dismiss the case paying 12.5 million dollars. In this settlement, Block never confessed to any wrongdoing, yet he was willing to pay the sum to settle the case and pay out the class members.
The federal court provided the final approval of the settlement, and now the money can be distributed. Payments will start at the 2026, after the settlement administrator is done with claim verifying and processing.
Claimants are not required to make any additional steps once they make a valid claim unless they are given special instructions by the administrator. The payment will be made to the approved claimants according to the method chosen by the claimant in his claim form that can be in direct deposit, mailed check, or electronic transfer.
Cash App Lawsuit
The lawsuit was initiated when a resident of Washington state made a case in the form of a class action against the mother company of Cash App, Block, Inc. The complaint claimed that the promotional text messages had been dispatched by the Cash App promoted via the Invite Friends feature of the app, and were misleading by breaking state and federal laws on consumer protection due to lack of explicit permission by the recipient.
These were meant to be motivating messages to invite other users to download Cash App using a referral code, usually with some type of small incentive to the sender and the receiver. Users, however, claimed that they had not previously consented to accept business promotional messages and this is the reason why they categorized the messages as spam.
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Who Is Eligible to receive the Settlement Payment?
The settlement is applicable to a definite group of individuals called settlement class. In order to become eligible, one needs to pass through a number of requirements:
- They should have been sent one or more Cash App promoting or referring text messages at least once before November 14, 2019, and on or before August 7, 2025.
- They should have been also living in the state of Washington when they received these messages.
- They also should not have already provided a clear and agreeable consent to get the text messages.
- They should have filed a good claim before the due date as stipulated by the court.
- The settlement funds can only be offered to people who fulfill all these conditions. The individuals who did not reside in Washington or chose to receive Cash App messages are not included in this settlement group.
Settlement Amount and Payments estimated
The overall settlement that is involved in this case is 12.5 million. All the rest will go to all eligible claimants after legal costs, administrative costs and the service award to the class representative.
There is no set number of payments they make to individuals, but rather the amount being paid to individuals depends on the number of approved valid claims and the amount of money left in the fund after the expenses. The initial estimates show that the majority of claimants can get averages of between 88 and 147 per capita.
This depends on the amount of money as the settlement money must be shared equally among all the valid claimants. In case the approved claims get many claims, then individual share can fall on the lower side of that range. On the other hand, the less the number of claims, the higher the payment per head.
Submission and Confirmation of Claims
Eligible persons had to file a claim form by the deadline indicated in the settlement agreement in order to get paid. This process usually consists of an introduction of the basic information like:
- Contact number in which the promotion reading was received;
- Verification of Washington state residence during receipt of the messages; and
- A statement showing that the claimant had not made a clear assertion that he or she agreed to receive the messages.
- After the claims were received, the settlement administrator had the responsibility of reviewing and verifying the claims. The approved claimant list was not provided with invalid or incomplete claims and in case of a verified claimant only, he is eligible to receive money.