Block, Inc., the parent company of Cash App, agreed to pay $12.5 million to settle a class action lawsuit brought by Washington consumers who received thousands of unsolicited text messages promoting Cash App referrals. The settlement, which received final court approval on December 2, 2025, provides compensation of $394.36 to each approved class member—representing one of the largest penalties Block has faced for telemarketing violations. Payments began reaching claimants on February 2, 2026, though the claims deadline of October 27, 2025, has already passed, meaning only those who filed claims by that date are eligible to receive compensation.
This settlement stems from Block’s practice of sending Cash App referral text messages to Washington residents without obtaining clear, affirmative prior consent—a violation of Washington’s Consumer Protection Act and federal telemarketing regulations. Between November 14, 2019, and August 7, 2025, the company sent these unsolicited promotional texts to thousands of people, many of whom never agreed to receive marketing messages and had no prior relationship with Cash App. The lawsuit alleged that Block knew these messages violated consumer protection laws but continued the practice anyway, making this settlement a significant enforcement action against one of the nation’s largest financial technology companies.
Table of Contents
- What Violations Did Block Commit Through Cash App’s Text Message Campaign?
- How Much Money Is Block Paying and How Is It Distributed?
- Who Qualifies as Part of the Class and Can Receive Payment?
- What Is the Process for Claiming Settlement Money or Checking Payment Status?
- What Happens to Unclaimed Settlement Money in This Case?
- How Does This Settlement Compare to Other Major Telemarketing and Text Message Violations?
- What Does This Enforcement Action Mean for Consumer Protections Going Forward?
- Conclusion
What Violations Did Block Commit Through Cash App’s Text Message Campaign?
Block’s primary violation was sending unsolicited marketing text messages without obtaining prior express written consent—a requirement under Washington’s Consumer Protection Act and the federal Telephone Consumer Protection Act (TCPA). The settlement documents indicate that Cash App referral texts were sent to people who had not explicitly agreed to receive promotional messages, and many recipients had no existing relationship with Block or Cash App. These messages encouraged people to refer friends to the platform in exchange for rewards, making them clearly promotional in nature rather than transactional or informational messages, which would have different legal requirements.
The violation became particularly concerning because Block continued this practice over a six-year period, affecting tens of thousands of Washington residents. The company’s defense in the case apparently did not successfully argue that it had obtained proper consent from recipients, suggesting the records showing prior permission were either nonexistent or insufficient under the law. For consumers, this meant receiving persistent, unwanted marketing messages on their phones without any legitimate way to have agreed to them in advance. The company did not dispute the factual basis of the claims, instead agreeing to settle and pay damages.
How Much Money Is Block Paying and How Is It Distributed?
The total settlement amount of $12.5 million includes compensation to class members, attorney’s fees, administrative costs, and a cy pres award (funds donated to related charitable causes if not claimed). The approved settlement provides $394.36 to each person who submitted a valid claim by the October 27, 2025, deadline. Based on the settlement structure, approximately $8.7 million remains available for distribution among the class members who successfully filed claims, meaning roughly 22,000 people are eligible to receive payments.
It’s important to note that this payment amount is significantly less than what many individual consumers might have hoped to recover. While $394.36 represents Block’s obligation to pay for the violation, it reflects the reality that settlement pools must be divided among all eligible class members. Some class members may have received only a handful of unwanted text messages, while others received dozens, but the settlement provides the same amount to all. Additionally, because the claims deadline has already passed, anyone who did not file a claim by October 27, 2025, is ineligible to receive payment, even if they were part of the affected class.
Who Qualifies as Part of the Class and Can Receive Payment?
The settlement class consists of Washington residents who received one or more unsolicited Cash App referral text messages between November 14, 2019, and August 7, 2025, without having provided clear, affirmative prior consent to receive such messages. This definition sounds straightforward but requires meeting specific criteria—the text message must have been from Cash App or Block, promoting Cash App referrals, and the recipient must be able to prove they never agreed to receive marketing messages from the company. For example, someone who signed up for a Cash App account and checked a box agreeing to marketing communications would likely not qualify, while someone who gave their phone number to a friend who referred them to Cash App would probably be eligible.
The settlement administrator maintained detailed records of which phone numbers received these promotional texts and cross-referenced them against Block’s consent database. Class members who filed claims had to either submit documentation of their eligibility or attest to receiving these messages. Notably, the large majority of class members who met the definition received the settlement payment automatically; they did not need to submit extensive evidence. However, the February 2, 2026, start date for payments means that by now, most distributions have already been issued, and stragglers who filed late may face additional delays or denials if they cannot meet the documentation requirements.
What Is the Process for Claiming Settlement Money or Checking Payment Status?
Because the claims deadline passed on October 27, 2025, the settlement is now in the payment distribution phase rather than the claims filing phase. The settlement administrator began issuing checks and electronic payments on February 2, 2026, to all approved claimants. If you are eligible and filed a timely claim, you should have already received your $394.36 payment or be in the process of receiving it. Class members can verify their payment status by visiting the official settlement website, bottomstextsettlement.com, where they can enter their claim number or contact information.
If you believe you are part of the class but did not file a claim by the October 27, 2025, deadline, your options are now limited. Most courts do not allow late claims in settled class actions unless there are extraordinary circumstances, such as incapacity or being prevented from filing by the settlement administrator’s error. Attempting to file a claim now would likely result in denial. The only realistic option for those who missed the deadline is to contact a lawyer to discuss whether any appeal or special circumstance applies to your situation. This represents a significant limitation of class action settlements: they require timely participation, and missing deadlines can cost you money permanently.
What Happens to Unclaimed Settlement Money in This Case?
Approximately $8.7 million of the $12.5 million settlement pool remains allocated for class members who filed timely claims. However, not all claimants may receive their full share immediately if the settlement administrator is still processing claims or if some payments bounce back (for example, due to invalid mailing addresses or closed bank accounts). In such cases, the settlement agreement typically requires a “sweep” process where remaining funds are gathered and distributed through supplemental payments, or alternatively, unclaimed or undeliverable funds may be donated to cy pres beneficiaries.
Cy pres awards in consumer protection settlements are typically donated to nonprofit organizations focused on consumer rights, financial education, or telecommunications consumer protection. In the Cash App settlement, any funds that remain unclaimed after the supplemental distribution period would likely go to organizations like the Consumer Federation of America or state-level consumer advocacy groups. This mechanism ensures that settlement money benefits consumers even if some individuals never claim their share, though it does mean that the full $12.5 million does not always reach individual class members. The irony is that people who did not receive the text messages or did not bother filing a claim benefit from these donations, which sometimes feels unfair to those who missed the deadline.
How Does This Settlement Compare to Other Major Telemarketing and Text Message Violations?
The Cash App settlement is substantial but not unprecedented in the telemarketing enforcement landscape. The Federal Trade Commission and state attorneys general regularly pursue cases against companies that violate text messaging and telemarketing rules, and settlements in the $5-20 million range are increasingly common. For context, Robokilling Technologies settled an FTC case for $100 million in 2023 for widespread illegal robocalls, while various mortgage and payday lenders have settled for $10-50 million for texting violations. Block’s $12.5 million penalty is in the middle of the pack—large enough to signal serious enforcement, but not as massive as settlements involving widespread harm across multiple states.
What distinguishes the Cash App case is that it targeted Washington residents specifically and involved a major fintech company rather than a fly-by-night lender or telemarketer. Block is a publicly traded company with billions in annual revenue, making the settlement a high-profile reminder that even large, reputable companies can be held accountable for consumer protection violations. The individual payment of $394.36 per person reflects that this was a class of approximately 22,000 people, a moderate class size compared to nationwide class actions that sometimes compensate hundreds of thousands or millions of people. In those massive classes, individual payouts are often much smaller—in the $5-50 range—making the Cash App settlement’s per-person amount relatively generous by comparison.
What Does This Enforcement Action Mean for Consumer Protections Going Forward?
The Block settlement demonstrates that regulators and courts are increasingly serious about enforcing text message consent requirements, even against well-known companies. Washington’s Attorney General pursued this case aggressively, resulting in a settlement that serves as a warning to other financial technology companies and digital payment platforms that unsolicited text marketing carries significant financial risk. In the two years since the lawsuit was filed, fintech companies have become more cautious about their texting practices, implementing stricter consent verification systems and clearer opt-out mechanisms. However, the settlement also highlights the limitations of after-the-fact enforcement.
By the time the lawsuit settled in December 2025, Block had already sent unsolicited texts for six years, affecting tens of thousands of people. Consumers who received these messages gained the right to compensation, but they could not get back the annoyance, frustration, and time wasted managing unwanted texts. Going forward, expect more aggressive enforcement from state attorneys general and increased scrutiny of fintech companies’ data practices. For consumers, the lesson is clear: monitor your text message opt-in boxes carefully, avoid checking pre-selected consent boxes, and report unsolicited marketing texts to your state’s attorney general—these reports often trigger investigations that benefit everyone.
Conclusion
The Cash App Block settlement represents a $12.5 million judgment against fintech giant Block, Inc., for sending unsolicited text messages to Washington consumers without prior consent. Approved class members who filed claims by the October 27, 2025, deadline are eligible to receive $394.36 in compensation, with payments having begun on February 2, 2026. The settlement demonstrates that even large, well-known companies can face substantial penalties for telemarketing violations, and it reinforces the importance of obtaining clear consent before sending marketing messages.
If you received unsolicited Cash App referral text messages and filed a timely claim, check the settlement website at bottomstextsettlement.com to verify your payment status. For those who missed the deadline, the opportunity to recover compensation has likely passed. This settlement serves as a reminder to monitor your consent choices with tech companies, report violations promptly, and take consumer protection laws seriously—they can result in meaningful compensation when companies break the rules.