Block Inc. to Pay $12.5 Million to Settle Washington CEMA Class Action Related to Cash App
Block, Inc., the company behind the popular Cash App, has agreed to a $12.5 million settlement to resolve claims that it violated Washington's Commercial Electronic Mail Act (CEMA). The lawsuit alleges that Block assisted users in sending unsolicited commercial text messages to Washington residents through its "refer a friend" program.
The Cash App Referral Program and CEMA
The settlement stems from Cash App's "refer a friend" program, which incentivized users to refer new customers to the app. While such programs may be permissible under stricter federal Telephone Consumer Protection Act (TCPA) rules, Washington's CEMA has broader requirements. CEMA applies to companies that "assist" in the transmission of illegal messages, making refer-a-friend SMS programs particularly risky for companies operating in Washington state.
According to the lawsuit, the referral texts, such as, “Hey! I’ve been using Cash App to send money and spend using the Cash Card. Try it using my code and you’ll get $5. FVRJ1PH https://cash.app/app/FVRJ1PH," sent between November 14, 2019, and August 7, 2025, violated CEMA because recipients did not provide prior consent to receive them.
Settlement Details and Eligibility
The $12.5 million settlement covers 1,975,187 unique phone numbers with Washington area codes that Block users sent messages to. Class members who received a Cash App referral text message while living in Washington between November 14, 2019, and August 7, 2025, and who did not provide clear and affirmative consent to receive the message, may be eligible to file a claim.
- Eligible class members can expect to receive an estimated payment between $88 and $147.
- The exact amount depends on the number of valid claims submitted and deductions for administrative costs, attorneys’ fees, and service awards.
- The deadline to file a claim is October 27, 2025.
Attorneys for the class will seek approximately $3.1 million in fees. After administration and other costs, over $8 million should be available for distribution to the class members.
How to File a Claim
To receive a payment, eligible class members must submit a valid claim form by October 27, 2025. Claim forms can be submitted online or downloaded, printed, and mailed to the settlement administrator:
Bottoms v Block Settlement Administrator, PO Box 2631 Baton Rouge, LA 70821
Class members must provide their claims code (if they received one by email or mail) and the phone number(s) where they received the Cash App referral text message(s).
Payout options include:
- PayPal
- Venmo
- Zelle
- Virtual prepaid card
- Paper check
Settlement Fund Breakdown
| Item | Amount |
|---|---|
| Settlement Administration Costs (Estimated) | $619,500 |
| Attorneys' Fees (Up to) | $3,125,000 |
| Attorneys’ Expenses (Estimated) | $41,133.36 |
| Service Award to Class Representative (Up to) | $10,000 |
| Payments to Eligible Class Members | Remaining Funds |
Important Dates
| Date | Event |
|---|---|
| October 27, 2025 | Deadline to File a Claim |
| October 27, 2025 | Deadline to Request Exclusion |
| December 2, 2025 | Fairness Hearing |
Looking Ahead
While Block Inc. denies any wrongdoing, the company agreed to the settlement to avoid the cost and uncertainty of further litigation. The settlement highlights the importance of complying with Washington's CEMA, particularly for companies that utilize "refer a friend" style SMS programs. The payout date will be determined after final court approval and resolution of any appeals.
