If you live in Washington State and use Cash App, this news is extremely important for you. A major class-action lawsuit involving Cash App recently concluded, with the company agreeing to pay a settlement of $12.5 million (approximately ₹104 crore). This case relates to users who were sent referral text messages without their consent. Although the deadline to claim this compensation has expired on October 27, 2025, all eyes are now on when payments will begin.
This lawsuit is being considered a major victory for consumer rights. Tech companies must now remember that they will have to answer for violating consumers’ privacy.
The Beginning of the Lawsuit: What was the Bottoms v. Block, Inc. case?
The whole dispute started with a trial known as Bottoms v. Block, Inc. Cash App’s “Invite Friends” feature was an interesting one. Users could invite their friends to the app, and in return, they would receive some bonuses. Nevertheless, difficulties percolated as the feature started to send unsolicited text messages that were generated by taking numbers from users’ contact lists without their approval, even to those who had never used Cash App.
The laws of Washington State concerning consumer protection are very rigorous. Especially the Telephone Consumer Protection Act (TCPA) demands that written approval be obtained prior to the dispatch of any marketing or promotional messages. After the evidence that Cash App had sent messages without permission became known, it was viewed as a violation of privacy, thus the case was brought to court.
Cash App’s parent company, Block Inc., did not admit any wrongdoing but opted for a settlement to avoid a protracted legal battle.
$12.5 Million Settlement: Terms and Distribution Process
Cash App agreed to create a $12.5 million settlement fund out of court. This amount will be divided into several parts:
- To compensate eligible users,
- To pay for lawyers and administrative expenses,
- And to provide a bonus to the person who filed the lawsuit.
The company clarified that it had not violated any laws but only made the payment to amicably resolve the dispute.
Key details are provided below:
| Details | Information |
|---|---|
| Total Settlement Fund | $12.5 million |
| Eligible Period | November 14, 2019 – August 7, 2025 |
| Eligible Group | Washington State Residents |
| Estimated Payout Amount | $88 – $147 per person |
| Claim Deadline | October 27, 2025 |
| Official Website | BottomsTextSettlement.com |
Payment Process: How Much and When Will You Receive Money
Now the most important question is when and how much will the payment be. The amount of compensation will depend on how many people filed claims within the deadline.
If more people have filed claims, the amount per person will be lower, and if the number of claims is lower, each person will receive a higher payment.
It is estimated that each eligible person could receive a payment between $88 and $147. However, the final amount will be determined only after court approval.
A Fairness Hearing will be held, in which the court will determine whether the settlement is fair and reasonable. The payment process will begin only after approval.
Timeline: When can compensation be received
The deadline for filing a claim has now passed, so the next step is a court hearing. This hearing will take place in the U.S. District Court for the Western District of Washington.
If the court approves the settlement, the payment process will begin.
Payment options will be:
- Direct Deposit
- Prepaid Debit Card
- Physical Check
However, administrative procedures and verification may take a few months.
Payment Distribution Process
When funds are ready for distribution, payments will be made in the following order:
- Administrative and legal expenses will be deducted first.
- The remaining amount will be divided equally among eligible users.
- Payments will be sent through the same method selected by the user when submitting a claim.
If for some reason a payment fails or no one files a claim, the amount will either be redistributed or settled according to the court’s decision.
Those who have filed a claim must therefore keep their email and bank details updated.
Important Points for Claimants
Although the claim period has expired, those who have already filed a claimThose who have received a claim should keep a few important things in mind:
- Keep your contact details (email, address, bank account) updated.
- Keep your Claim Confirmation Number safe.
- If you chose the digital payment option, ensure your bank account is active.
- Regularly check the BottomsTextSettlement.com website (https://BottomsTextSettlement.com) for new information and updates.
Impact of this case: A victory for privacy
This lawsuit wasn’t just a payment dispute, but a victory for consumer privacy rights. The court made it clear that sending ads to someone without their consent is tantamount to infringement of privacy.
Now, tech companies will be more vigilant and ensure they don’t misuse users’ personal information. This lawsuit will pave the way for even stricter data protection and privacy regulations in the future.
Most importantly, this case proves that even ordinary consumers can raise their voices and seek justice against big tech companies.
Conclusion: A Milestone for Consumer Rights
This lawsuit involving Cash App in Washington State has become a landmark example for protecting privacy and consumer rights in the digital age.
Although the company did not admit any wrongdoing, it still had to pay the price for using user data without permission.
Eligible users will now have to wait for the court’s final decision to receive their share of compensation.
Ultimately, this case is about much more than just a $12.5 million settlement—it marks the beginning of a transformation where technology companies will be forced to become more transparent and user-centric.
FAQs
Q1. What is the Cash App $12.5 million settlement about?
The settlement was reached after Cash App was accused of sending unsolicited referral text messages to Washington residents without their consent.
Q2. Who is eligible to receive payment from the settlement?
Only Cash App users residing in Washington State between November 14, 2019, and August 7, 2025, who received unwanted referral texts, are eligible.
Q3. How much money will each eligible person receive?
Each eligible claimant is expected to receive between $88 and $147, depending on the total number of approved claims.
Q4. When will payments be distributed?
Payments will be sent after the court grants final approval in the Fairness Hearing, which may take a few months due to verification and administrative processes.
Q5. How will eligible users get their payment?
Claimants will receive their payment via the method they selected — Direct Deposit, Prepaid Debit Card, or Physical Check.
