Cash App has reached a major agreement to settle a class action lawsuit related to unwanted text messages. The company will pay $12.5 million to resolve claims that it sent promotional or automated texts without proper permission. Many users across the United States who received these messages may now get compensation. The settlement provides direct cash payments instead of vouchers or credits, which makes it more valuable for those affected.
The case centers on allegations that Cash App violated laws meant to protect consumers from spam communications. Even though the company denies any wrongdoing, it decided to settle to avoid further legal fights. This deal creates a fund that could help millions of people who dealt with unsolicited texts from the popular payment app.
Details of the Spam Text Allegations
The lawsuit accused Cash App of sending text messages that promoted its services without getting clear consent from recipients. These messages were described as unsolicited and automated in nature. Federal rules require companies to obtain permission before sending such promotional texts to people’s phones.
Plaintiffs in the case said these practices went against consumer protection laws. The texts often encouraged users to sign up or use Cash App features. Many people found them annoying and intrusive, especially if they had not agreed to receive marketing messages.
Cash App maintained that it did nothing wrong. However, the company chose to settle the matter rather than continue with expensive and time-consuming court proceedings. This type of agreement is common in class action cases involving large companies.
Reasons Behind the $12.5 Million Settlement
Settling the lawsuit allows Cash App to put the issue behind it and focus on its business operations. Continuing the case in court could have led to higher costs and potential damage to the company’s reputation. By creating the $12.5 million fund, Cash App resolves the claims while avoiding an admission of liability.
This approach gives the company certainty and helps prevent similar issues in the future. Many tech and financial platforms face lawsuits over communication practices as they grow and reach more customers. Agreements like this one help close legal chapters without prolonged battles.
The settlement reflects broader trends where consumers and regulators pay closer attention to how companies handle marketing through texts and other digital channels.
Eligibility Criteria for Compensation
Not every Cash App user will automatically receive money from the settlement. Eligibility depends on whether a person received qualifying spam or promotional texts during the specific time period covered by the case.
Only United States residents with domestic phone numbers qualify. Both current and former Cash App account holders may be included if they were affected. Simply having used the app at some point does not guarantee payment.
To get compensation, affected users must submit a valid claim form. Official notices from the settlement will explain the exact rules and deadlines.
Here is a clear breakdown of the main eligibility requirements:
| Eligible Users | Basic Requirement |
|---|---|
| Current users | Received qualifying texts |
| Former users | Affected during claim period |
| U.S. residents | Domestic phone numbers |
| Claim filers | Submitted valid claim |
This table shows the key groups and conditions that determine who can participate in the settlement fund distribution.
How the Payment Amount Works
The settlement offers an estimated $147 payment per eligible person. This figure represents the potential maximum amount each approved claimant could receive. However, the actual payout might change based on how many valid claims are submitted.
If fewer people file claims, individual payments could reach the full $147. On the other hand, higher participation may lead to slightly lower amounts per person to ensure the $12.5 million fund covers everyone fairly.
Settlement administrators will review all claims and calculate final payments after the process ends. This method is standard in class action cases and helps distribute money equitably among those who qualify.
Payment Process and Timeline
Payments will begin only after a court gives final approval to the settlement. Once approved, administrators will verify all submitted claims. This review step ensures that only eligible people receive money.
Distribution could take several months to complete. Eligible users may get their Cash App settlement money through checks, electronic transfers, or other digital methods based on their preferences.
People should keep their contact information current to avoid missing notifications or payments. Patience is important during this phase, as careful processing helps maintain fairness and security.
Steps Users Should Take
Cash App users who think they received unwanted texts should watch for official settlement notices. These will come through mail, email, or the dedicated settlement website.
Reviewing the eligibility details carefully is crucial before filing a claim. Submitting accurate information by the deadline is the only way to secure compensation.
Keeping records like old text messages or screenshots can help if any questions come up during verification. Missing the claim window means losing the chance to get part of the settlement fund.
Conclusion
Cash App has agreed to pay $12.5 million to settle claims about sending spam texts without proper consent. This creates a fund that offers eligible U.S. users the opportunity to receive direct cash compensation, potentially up to $147 each.
What happened: The company settled the class action lawsuit without admitting fault, addressing allegations of violating consumer communication laws.
Why it matters: The agreement provides real financial relief to affected users and highlights the need for proper permission in promotional messaging.
What readers should understand going forward: Eligible individuals must file valid claims on time to receive payments, and actual amounts may vary based on participation levels.