In a significant development for Cash App users, the company has agreed to a $12.5 million settlement to resolve a class action lawsuit over alleged spam text messages. Beneficiaries of this settlement are expected to receive up to $147 each, marking a rare case where a financial tech company is held accountable for unsolicited communications.
This article covers the background of the settlement, who qualifies, the expected payment timeline, and what recipients must do to claim their share.
Background of the Cash App Spam Texts Lawsuit
The class action lawsuit claimed that Cash App violated federal telemarketing and consumer protection laws by sending unauthorized promotional text messages to users without proper consent.
Key points include:
- Allegations of unsolicited SMS marketing
- Users reported receiving repeated messages
- The lawsuit argued this violated the Telephone Consumer Protection Act (TCPA)
After months of legal proceedings, Cash App opted for a $12.5 million settlement to resolve all claims without admitting wrongdoing.
Who Is Eligible for the $147 Payment?
Eligibility is generally determined by whether you received one or more of the disputed messages within the defined period.
Likely eligibility criteria:
- Received promotional text messages from Cash App between specific dates (details in the official settlement notice)
- Active U.S. residents during the period of the alleged messages
- Part of the class action settlement group as defined by the court
Users who meet these criteria may receive a direct payment of up to $147 or a proportional share if the total claims exceed the settlement fund.
How to Claim Your Settlement
Cash App users included in the class must take the following steps:
- Check your eligibility
- Visit the official settlement website (details provided in the notice or via email)
- Confirm whether your phone number or email is listed
- Submit a claim
- Fill out the online form or mail a claim form
- Include relevant details such as phone number or proof of message receipt
- Deadline Awareness
- Claims must be submitted before the cutoff date (usually a few months from the settlement approval)
- Late claims may be denied
- Payment Processing
- Approved claims will be paid via check, direct deposit, or prepaid card, depending on the settlement terms
- Expect processing within 60–90 days after claim approval
Important Notes for Beneficiaries
- No action = no payment: Users must actively submit a claim to receive the $147.
- Beware of scams: Only rely on the official settlement website or court communications. Cash App will not call or text asking for extra fees.
- Proportional distribution: If many users file claims, payments could be slightly less than $147 to stay within the $12.5 million cap.
Timeline of Settlement
| Milestone | Expected Date |
|---|---|
| Court approval | Early January 2026 |
| Claim submission opens | Mid-January 2026 |
| Deadline to submit claims | Late March 2026 |
| Distribution of payments | April–May 2026 |
Final Verdict — What You Need to Know
The Cash App $12.5 million settlement offers users a chance to receive up to $147 in compensation for spam texts. To ensure you get your share, verify eligibility, submit a claim promptly, and ignore third-party scams.
This case also highlights the growing importance of consumer protection against unsolicited communications in the digital finance space.
FAQs – Cash App Settlement
Who can get the $147 payment?
Users who received unauthorized Cash App text messages during the specified period.
Do I need to submit a claim?
Yes, only those who submit a valid claim will receive payment.
Is Cash App admitting guilt?
No, the settlement resolves the lawsuit without an admission of wrongdoing.
When will the money arrive?
Likely between April and May 2026 after claim processing.
How do I avoid scams?
Only use official settlement channels; Cash App will not request fees to release payments.