What Happened : The Cash App Class Action Settlement Explained
Cash App (owned by Block, Inc.) has recently been in the legal spotlight over multiple claims of security failures, unauthorized transactions, and unsolicited communications. Several class action lawsuits have been consolidated or settled. Below is a breakdown of the most significant developments to date.
Key Cases & Claims
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Security breaches, unauthorized access, and fraud claims
One of the major lawsuits alleges that Cash App and Cash App Investing were negligent in protecting user data, leading to unauthorized access via recycled phone numbers, data leaks, and fraudulent withdrawals. Hindustan Times+4FOX 9 Minneapolis-St. Paul+4Cash App Security Settlement+4
Under this case, users who held a Cash App or Cash App Investing account between August 23, 2018 and August 20, 2024 may be eligible for relief. Cash App Security Settlement+3FOX 9 Minneapolis-St. Paul+3Hindustan Times+3
The proposed settlement fund is $15 million. Cash App Security Settlement+5FOX 9 Minneapolis-St. Paul+5ECOticias.com El Periódico Verde+5
Under that agreement, eligible users might receive up to $2,500 for documented out-of-pocket losses, plus compensation for time spent resolving issues (e.g. $25/hour up to 3 hours) and losses from unauthorized transactions. FOX 9 Minneapolis-St. Paul+3Hindustan Times+3Cash App Security Settlement+3 -
Spam / “Invite Friends” unsolicited text messages
A separate class action filed by plaintiff Kimberly Bottoms (in Washington state) claims that Cash App violated consumer protection laws by sending unsolicited referral texts under its “Invite Friends” program. ClassAction.org+3Top Class Actions+3ClassAction.org+3
To resolve that claim, Block has agreed to a $12.5 million settlement. ClassAction.org+2Top Class Actions+2
If approved, eligible class members who received those texts while residing in Washington between November 14, 2019 and a yet-specified end date will be able to submit claims to share in that fund. ClassAction.org+1
The court estimates that individual payments will be in the range of $88 to $147 per claimant (before fees/administration) depending on the number of valid claims filed. ClassAction.org
Who Qualifies to Participate in These Settlements?
For the security/fraud settlement:
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You must have held a Cash App or Cash App Investing account at some point between August 23, 2018 and August 20, 2024. FOX 9 Minneapolis-St. Paul+2Cash App Security Settlement+2
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You must have experienced one or more of the following during that time:
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Unauthorized access to your account (e.g. via recycled phone numbers or data breach) FOX 9 Minneapolis-St. Paul+2Cash App Security Settlement+2
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Fraudulent withdrawals or transfers not authorized by you Hindustan Times+3FOX 9 Minneapolis-St. Paul+3Cash App Security Settlement+3
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Out-of-pocket losses (documentation required) Hindustan Times+2Cash App Security Settlement+2
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You must file a valid claim by the deadline (which passed for many users). The Verge+2FOX 9 Minneapolis-St. Paul+2
For the spam-text settlement:
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You must have resided in Washington state when you received a Cash App “Invite Friends” referral text message. ClassAction.org+2Top Class Actions+2
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The message must have been sent between November 14, 2019, and the cut-off date set by the settlement administrator. ClassAction.org+1
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You must file a claim (once the claim process is open) and meet the administrative requirements. Top Class Actions+1
How to Claim & What Steps to Take
For the security/fraud settlement:
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Visit the official settlement website
Go to CashAppSecuritySettlement.com to access the claim form, read FAQs, and find guidelines. Cash App Security Settlement+2Cash App Security Settlement+2 -
Submit your claim
You’ll need to provide personal and account details, describe the nature of the loss or unauthorized access, and attach supporting documents (bank statements, screenshots, communication logs, etc.) Cash App Security Settlement+2Cash App Security Settlement+2 -
Meet the deadline
The original deadline to file claims was November 18, 2024, at 10:59:59 PM Pacific Time. The Verge+3FOX 9 Minneapolis-St. Paul+3Cash App Security Settlement+3
(If you missed that, your ability to claim might now be lost.) -
Await processing & payout
Once claims are verified and approved, payouts will be made (e.g. by check, direct deposit, or other means). The timeline is expected to run through late 2025. Cash App Security Settlement+3Hindustan Times+3FOX 9 Minneapolis-St. Paul+3
For the spam-text settlement:
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The claim process is not yet fully operational, as of present reports. ClassAction.org+1
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Notices will be sent to identifiable class members, and a public notice campaign will reach others. Top Class Actions+1
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When claims open, eligible individuals will submit phone number info, attest they received the referral text, and select payment method (check / electronic transfer) as prescribed. ClassAction.org
What You Could Receive: Possible Payouts & Limits
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Up to $2,500 for documented out-of-pocket losses in the security/fraud settlement. FOX 9 Minneapolis-St. Paul+2Cash App Security Settlement+2
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Up to $75 additional compensation for time spent dealing with the fallout (3 hours × $25/hour) in that same settlement. Hindustan Times+2Cash App Security Settlement+2
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For the spam-text case, estimated payouts of $88 to $147 per claimant (before deductions) are being projected. ClassAction.org+1
Keep in mind: the final awards depend on how many valid claims are submitted. The more claims, the smaller each share tends to be.
Risks / Things to Watch Out For
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Missed deadlines — for the major security settlement, the claim deadline is already past. If you didn’t file before November 18, 2024, you may not be eligible. FOX 9 Minneapolis-St. Paul+2The Verge+2
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Proof requirement — you need strong documentation for losses, unauthorized access, or time spent. Claims without proper documentation may be rejected. Cash App Security Settlement+2Cash App Security Settlement+2
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Appeals / delays — payouts may be delayed by appeals, administration issues, or claim review. Hindustan Times+2Cash App Security Settlement+2
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Denial of liability — in many settlements, the defendant (here, Block / Cash App) does not admit wrongdoing. The settlement is often a compromise to avoid further litigation. FOX 9 Minneapolis-St. Paul+2Cash App Security Settlement+2
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Tax implications — Depending on your jurisdiction, compensation may be taxable. Consult tax advice if your settlement sum is significant.
Broader Context & Regulatory Pressures
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Beyond the class action settlements, in January 2025, Block (Cash App’s parent) agreed to an $80 million settlement with 48 state financial regulators over alleged weaknesses in its anti-money laundering (AML) compliance program. The Wall Street Journal
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Meanwhile, the Consumer Financial Protection Bureau (CFPB) previously ordered Cash App to pay $175 million over allegations of inadequate fraud protection and customer service failures. Top Class Actions+1
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These regulatory actions highlight growing pressure on fintech companies to maintain robust security, transparency, and accountability.
What You Should Do (If You Believe You Qualify)
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Check your history — Were you a Cash App user between August 23, 2018 and August 20, 2024? Do you have any record of unauthorized transactions, account breaches, or data issues?
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Gather evidence — Transactions, screenshots, emails with support, bank / credit card statements, etc.
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Check official sites — Visit CashAppSecuritySettlement.com for claim forms, FAQs, and deadlines. Cash App Security Settlement+1
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File your claim (if still possible) — If you missed the security settlement deadline, monitor for any late-file or re-open windows. For the spam-text settlement, stay alert for claim opening notices.
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Monitor payout status — Use the settlement administrator’s contact or status portal (if available) to track whether your claim was approved and payment issued.
The Cash App class action settlement represents a significant restoration attempt for users impacted by security lapses and unwelcome communications. If you believe you were harmed and you meet eligibility criteria, it’s worth checking whether you can claim compensation. But act quickly — legal deadlines and strict claim rules tend to favor those who stay informed and proactive.
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