Cash App agrees to $12.5M settlement over spam texts class action claims

Cash App spam texts class action settlement overview:

• Who: Plaintiff Kimberly Bottoms filed a motion for preliminary approval of a $12.5 million settlement with Cash App parent company Block Inc.
• Why: Bottoms claimed Block violated the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act by sending unsolicited text messages.
• Where: The Cash App class action settlement was filed in Washington federal court.
• How to File a Claim: The settlement website isn’t live yet. Subscribe to our free newsletter, and we’ll notify you as soon as claim instructions are available.

Cash App parent company Block Inc. has agreed to pay $12.5 million to resolve claims it sent unsolicited text messages through the mobile payment service’s “Invite Friends” referral program.

Plaintiff Kimberly Bottoms filed the Cash App spam texts class action settlement motion June 30 in Washington federal court. 

The settlement will benefit consumers who received a Cash App referral program text message while a Washington resident between Nov. 14, 2019, and the latest date to be provided to the settlement administrator identifying the phone numbers with Washington area codes.

Bottoms filed the Cash App class action lawsuit in November 2023 alleging Block violated the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act by sending the unsolicited text messages.

The proposed settlement class includes individuals holding nearly 2 million phone numbers with Washington state area codes, Bottoms says.

Cash App spam texts settlement will provide pro rata payments to class members

Under the terms of the Cash App spam texts class action settlement, Block will establish a $12.5 million settlement fund to provide pro rata payments to class members who submit a timely and valid claim form.

The settlement fund will also cover the costs of administering the settlement, as well as attorneys’ fees and costs and a service award for the class representative.

Each class member who submits a valid claim will receive a pro rata share of the settlement fund. Class counsel estimates each claimant will receive between $88 and $147, or between 17% and 29% of the $500 statutory damages per violation of the Washington Commercial Electronic Mail Act.

Individual notice will be sent via email and postcard to all identifiable settlement class members, while an online publication notice campaign will target potential class members who cannot be identified through reasonable efforts.

The settlement class members will have the option to receive payment via check or electronic transfer, such as Venmo or PayPal.

Block denies any wrongdoing but agreed to the settlement to resolve the claims against it.

In January, the Consumer Financial Protection Bureau (CFPB) ordered Cash App to pay $175 million to resolve allegations that it failed to provide adequate customer service and fraud protection. Last year, Cash App agreed to a $15 million settlement to resolve claims around a data breach that happened in 2022 and 2023.

What do you think of this Cash App spam texts class action settlement? Tell us about it in the comments.

The plaintiff is represented by Beth E. Terrell, Jennifer Rust Murray and Eden B. Nordby of Terrell Marshall Law Group PLLC and Sophia M. Rios, E. Michelle Drake and Colleen Fewer of Berger Montague PC.

The Cash App spam texts class action settlement is Bottoms v. Block Inc., Case No. 2:23-cv-01969-MJP, in the U.S. District Court for the Western District of Washington.

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