Cash App Settlement: $12.5M Spam Text Lawsuit Pays $147 to Each Eligible User

In today’s digital age, when every company is using various marketing methods to increase its user base, sometimes this process also comes into controversies. One such case has come to light related to Cash App Payment Relief in which a class action settlement of $12.5 million (about ₹ 105 crores) has been made. Under this settlement, eligible consumers will be paid up to $147.

What is the whole matter?

The ordeal began when a woman known as Kimberly Bottoms filed a case against the parent company of Cash App, Block Inc., where she alleged that the company had sent its users spam text messages without the their knowledge. These invitations were done through the company under the program Invite Friends, whereby users were rewarded (through cash) when they invited other persons to the application.

On what basis was the case?

The case was filed in the Washington Federal Court and it said that Block Inc. violated two major laws:

• Washington Consumer Electronic Mail Act
• Washington Consumer Protection Act
• These laws outline that any form of promotion message is not allowed to be sent to a person without their consent.
• This suit was initiated at U.S District Court, Western District of Washington.

How much does it cost to settle?

Block Inc. had stated clearly that by no means they were accepting that they were in the wrong, however, to prevent the court battle, they chose to settle, namely, 12.5 million dollars.

This amount will be distributed to all consumers who have received Cash App’s referral message after November 14, 2019 while residing in Washington state. Even those whose phone numbers start with Washington area codes fall into this category.

How many people could be affected?

It is estimated that more than 2 million consumers could be affected by this settlement. These are all people who received unsolicited referral text messages from Cash App.

How much will they get paid?

After deducting:

• attorneys’ fees,
• case administration costs,
• and a Service Award to the person who filed the case (Kimberly Bottoms),
• eligible consumers will receive between $88 and $147 from the settlement fund.
• This amount will be paid on a “pro rata” basis, meaning the more people file claims, the lower the payout per person.
• This amount represents a 17% to 29% share of the compensation awarded, based on $500 per violation.

How will they get paid?

People who qualify for this settlement and file their valid claim on time will receive payment via:

Via check

Venmo, PayPal or other digital wallet

How do you know if you’re eligible?

Cash App or the settlement administrative body will notify eligible consumers by:

• Email
• Postcard

Additionally, an online publication notice will be issued to reach those who may not be able to be identified through traditional methods.

When and how to file a claim?

At the time of this article, the settlement website is not live yet. But users can subscribe to a newsletter to receive notifications as soon as the claim process begins.

Other legal actions against Cash App

This is not the initial problem that Cash App has faced on a legal front. Some of the key events are given below:

• January 2024: CFPB (Consumer Financial Protection Bureau) chief fined Cash App by $175 million because the company did not give satisfactory services to its customers and supports them against fraud.
• 2023: satellite company paid fifteen million dollars in case of the data breach.
• These cases provide a vivid picture that Cash App should start taking security of user data and services seriously.

Conclusion

This case is a warning to all digital companies that use consumer information without their consent. At the same time, this is an opportunity for consumers to recognize their rights and, if eligible, file a claim for an amount of up to $147 If you have received an unsolicited referral text from Cash App while living in Washington state, be prepared for the next update it could bring extra money to your pocket.

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