Eligible Cash App users could potentially receive up to 147 checks as part of a $12.5 million settlement related to a widespread texting dispute. The settlement stems from allegations that the popular mobile payment platform engaged in unauthorized text messaging practices, violating consumer rights and privacy laws. The case, which was settled without admission of liability, has prompted the company to establish a claims process offering compensation to affected users. This development marks a significant resolution in a class-action lawsuit that drew attention to data privacy concerns surrounding financial technology services.
Background of the Settlement
The legal dispute originated when a group of Cash App users filed a class-action lawsuit alleging that the company sent unsolicited text messages without proper consent. The complaint accused Cash App of infringing on federal and state privacy laws, which require explicit user permission before commercial texts are sent. According to court documents, the messaging practices were widespread, affecting thousands of users across the United States.
The lawsuit, which gained momentum through consumer advocacy groups, argued that the company’s messaging practices constituted a breach of privacy rights and caused nuisance and inconvenience to users. Cash App, owned by Block, Inc., initially contested the allegations but ultimately agreed to settle the claims to avoid prolonged litigation.
Details of the Settlement
The $12.5 million settlement fund will be distributed among eligible users who can demonstrate they received unauthorized text messages from Cash App. The settlement provides a pathway for users to claim one or more payments, with the potential to receive up to 147 checks depending on the number of qualifying claims.
| Number of Valid Claims | Approximate Payment per Claim |
|---|---|
| 1–10 claims | $10 each |
| 11–50 claims | $15 each |
| 51–147 claims | $20 each |
Participants who submit multiple valid claims could potentially receive a maximum of $3,000 if they qualify for the full number of checks. The settlement also includes provisions for users who may have received only a few texts, ensuring fair compensation based on individual claim submissions.
Eligibility and Claim Process
Who Qualifies?
- Users who received unsolicited texts from Cash App between specific dates outlined in the settlement notice.
- Individuals who did not provide prior consent for receiving marketing or promotional messages.
- Active Cash App users with verifiable contact information on file.
How to File a Claim
- Visit the official settlement website linked through the court notice or trusted legal sources.
- Complete the online claim form providing necessary identification and contact details.
- Submit supporting documentation if required, such as screenshots or records of received messages.
Claims are typically accepted until a designated deadline, which is expected to be a few months after the settlement approval date. Participants are advised to review the official notice for precise instructions and timelines.
Implications for Cash App and Broader Privacy Concerns
The settlement highlights ongoing scrutiny over mobile financial services’ communication practices. While Cash App has maintained that its messaging was compliant with applicable laws, the case underscores the importance of transparent user consent processes. Privacy advocates continue to monitor how fintech platforms manage user data and communication preferences.
For Cash App users, the settlement offers an opportunity to seek restitution for potentially unwanted messages. It also serves as a reminder to review privacy settings and communication preferences within the app to prevent future unsolicited contact.
Additional Resources and References
- Financial technology (Fintech) – Wikipedia
- Forbes Technology News
- Consumer Financial Protection Bureau
Frequently Asked Questions
What is the recent settlement related to Cash App?
The recent $12.5 million settlement addresses issues related to texting practices involving Cash App users, leading to eligible users receiving up to 147 checks.
Who is eligible to receive checks from the settlement?
Eligible Cash App users who were affected by the texting practices outlined in the settlement are entitled to receive up to 147 checks.
How much can users potentially receive from the settlement?
Users may receive up to $147 in total checks, depending on their level of involvement and eligibility within the settlement.
How do users claim their settlement payments?
Eligible users need to submit a claim form through the official settlement website, providing necessary information to receive their checks.
When will users receive their settlement payments?
The timeline for payment distribution has not been specified, but users will be notified once the claim process is completed and payments are processed.
