The popular mobile payment service Cash App, owned by Block, Inc., has faced multiple lawsuits in recent years, resulting in major class action settlements. These settlements were designed to compensate users affected by data breaches, fraudulent transactions, and unsolicited promotional text messages.
If you’re a Cash App user, you may be wondering whether you qualify for compensation—or if it’s too late to file a claim. This guide breaks down each settlement, eligibility criteria, payout details, and the latest status updates.
What Is the Cash App Settlement Class Action?
A class action settlement is a legal resolution where a company agrees to pay compensation to affected consumers without admitting wrongdoing. For Cash App, two major settlements are noteworthy:
- The $15 million data breach and fraud-related settlement
- The $12.5 million unsolicited text message settlement
Let’s look at each in detail.
1. $15 Million Data Breach Settlement
What Happened?
- In 2021, a former Cash App Investing employee improperly accessed sensitive user data, including names, brokerage account numbers, and portfolio values.
- In 2023, unauthorized account access incidents and fraudulent transactions were reported.
- Users alleged that Cash App failed to secure their data and mishandled fraud complaints.
Block, Inc. denied wrongdoing but agreed to settle to resolve the legal dispute.
Who Was Eligible?
- U.S. residents who used Cash App or Cash App Investing between August 23, 2018, and August 20, 2024.
- Users who:
- Experienced unauthorized access or fraudulent transactions, or
- Spent time and money resolving security issues related to Cash App.
Compensation Details
- Up to $2,500 for documented out-of-pocket losses (e.g., bank fees, identity theft expenses).
- $25/hour for up to 3 hours of lost time (maximum $75).
- Additional reimbursement for verified unauthorized transaction losses.
Status Update
- Claim deadline: November 18, 2024
- Court approval date: March 27, 2025
- Payments:
- According to the official settlement website (cashappsecuritysettlement.com), claim reviews are ongoing.
- Deficiency notices have been sent to claimants with incomplete information.
- Payouts will be issued once all claims are processed. Some users may already have received electronic deposits or checks, but not all approved claims have been paid yet.
- Paper check cashing deadline (once issued): July 31, 2025
- According to the official settlement website (cashappsecuritysettlement.com), claim reviews are ongoing.
2. $12.5 Million Spam Text Message Settlement
Why the Lawsuit?
Many Cash App users reported receiving unsolicited “Invite Friends” referral texts promoting the app. This allegedly violated Washington State’s consumer protection and anti-spam laws.
Who Qualifies?
- Washington State residents only who received unsolicited promotional referral texts between November 2019 and 2024.
- Note: This settlement does not apply to Cash App users in other states.
Compensation Details
- Estimated one-time payout between $88 and $147 (final amount depends on the number of valid claims).
- Payments will be issued by check, Venmo, or other electronic methods.
Status Update
- As of July 2025, the claim portal is expected to open soon.
- No official deadline has been announced yet, but Washington residents should watch for claim notifications.
How to Check If You’re Eligible
- For the data breach settlement:
- If you submitted a claim before November 18, 2024, your claim is being processed. Monitor your email or visit the official website for updates.
- If you submitted a claim before November 18, 2024, your claim is being processed. Monitor your email or visit the official website for updates.
- For the text-message settlement:
- If you live in Washington State and received Cash App’s referral texts, look out for official claim notices once the portal opens.
- If you live in Washington State and received Cash App’s referral texts, look out for official claim notices once the portal opens.
Why These Settlements Matter
These settlements highlight the importance of data security and consumer privacy in financial technology. For users, they serve as a reminder to:
✔ Update account security settings regularly
✔ Monitor bank and app transactions for unusual activity
✔ Stay informed about legal actions that could entitle you to compensation
Final Thoughts
The Cash App settlement class actions show that even trusted financial apps can face serious legal scrutiny. While the data breach settlement is closed to new claims and currently processing payouts, the text-message settlement is still in its early stages, with claims expected to open soon.
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