The company Cash App, owned by Block, Inc., is facing a class-action lawsuit after being accused of sending promotional messages without consent. The lawsuit is estimated to cost the company $12.5 million, which will be paid in cash in amounts of up to $147. This money-sending and receiving app, used by more than 57 million people each month, has been accused of violating two Washington State laws, according to the Federal Trade Commission (FTC). Although the company does not admit to any fraudulent activity, it has agreed to a court settlement.
To receive the lawsuit settlement, it must be shown that one received one of these text messages between November 2019 and August 2025, was a resident of Washington at the time, and had not given clear consent. Once the final agreement is approved in the U.S. District Court, compensation payments will be made through applications such as Venmo, PayPal, or via checks. This is not the first time the company Cash Up has faced a class action lawsuit, as last year it was also accused of violating digital privacy regulations, being involved in data security incidents and unauthorized transfers.
Block Inc.
Founded in 2009 by Jack Dorsey and Jim McKelvey, it began its journey under the name Square Inc. In 2010, it launched its first platform, and in 2021 it changed its name to the current one, Block Inc. It is an American technology company aimed at providing ecosystems for consumers and merchants. It operates through two segments: Square, which provides payment and commerce tools for sellers, and CashApp, which offers financial services to individuals such as peer-to-peer payments and investments. Additionally, it also includes components such as TIDAL (a music and video platform) and TBD (for Bitcoin development).
Class Action Lawsuit
Currently, the company is facing a class action lawsuit that could cost it a significant amount of money. But what exactly is a class action lawsuit? A class action lawsuit is a way to group people who have been affected by the same harm and want to take it to court collectively. When a lawsuit becomes a class action, it applies to all “class members,” or people who may have similar complaints to those lodged in the lawsuit.
The usual procedure in such cases often leads to the company, despite not admitting fault (if any), eventually accepting a settlement through which payment is made to the affected parties. Some of the most common examples of class action lawsuits include discrimination, false advertising, or pollution.
Lawsuit against Block Inc.
Once it is clarified what a class action lawsuit is and how it works, we can understand what Block Inc. is facing. The company has been accused of sending promotional messages without consent to thousands of CashApp users in Washington, through the “Invite Friends” feature. The messages received included referral codes and a link, but the people receiving them had never given their consent. The state of Washington has a law that specifically prohibits this type of messaging and phone spam, so the lawsuit accuses the company of violating this regulation.
In response to this situation, the owner of the mobile payment application did not admit to committing any fraud, but reached a judicial settlement that will cost $12.5 million if they want to close the case. This implies that, depending on the number of claims made before October 27, the payments to the victims will vary between $88 and $147 per person.
Eligibility to Receive Compensation
Receiving compensation from this lawsuit requires meeting a series of eligibility requirements. First, you must have received one of these text messages between November 2019 and August 2025. During that period, you must have been a resident of Washington and not have clearly given prior consent to receive this type of messaging. Claims can be submitted by mail or electronically before October 27. If claims are not submitted before this date, the opportunity to receive payment will be lost.