Users of Cash App who received unsolicited text messages may be eligible for a share of a $12.5 million settlement following a class-action lawsuit that alleged the company violated federal law by sending unauthorized marketing texts. The lawsuit, filed in the Northern District of California, accused Cash App of engaging in aggressive marketing tactics through text messages without obtaining proper consent from recipients. As part of the settlement, eligible claimants could receive up to $147 in cash, depending on the number of claims submitted and the total number of claimants. The settlement underscores ongoing concerns about how financial technology companies handle consumer communication and data privacy.
Background of the Lawsuit
Allegations and Legal Claims
The lawsuit was initiated in late 2022 by consumers who argued that Cash App violated the Telephone Consumer Protection Act (TCPA), a federal law designed to prevent unsolicited marketing calls and texts. Plaintiffs claimed that the company sent promotional texts without explicit consent, leading to potential violations of privacy rights and consumer protections. The complaint highlighted that recipients reported receiving multiple messages that promoted Cash App’s services, often after they had not opted in or had previously requested to be removed from messaging lists.
Legal Proceedings and Settlement Approval
Following several months of litigation and negotiations, the parties reached a settlement agreement approved by the court in August 2023. The judge found that the settlement was fair and reasonable, considering the number of claims and the potential damages involved. Cash App denied any wrongdoing but agreed to resolve the matter to avoid prolonged litigation and potential reputational damage. The settlement fund will be distributed among qualifying claimants who submit valid claims within the designated period.
Who Is Eligible for Compensation?
Criteria for Claimants
- Received a text message from Cash App promoting its services between September 2022 and July 2023.
- Did not explicitly opt-in to receive marketing texts or explicitly request to be removed from messaging lists.
- Submitted a valid claim form within the settlement deadline.
Exclusions
- Individuals who received transactional or account-related messages not intended for marketing purposes.
- Recipients who opted out prior to receiving the messages in question.
- Claims submitted after the deadline or with incomplete information.
How to Submit a Claim
Steps for Claimants
- Visit the official settlement website at cashapptextlawsuit.com.
- Complete the online claim form, providing details such as your contact information and evidence of receipt (if applicable).
- Submit the form before the deadline, which is typically 60 days from the settlement approval date.
Alternative Submission Methods
- Mail a completed claim form to the designated address provided on the settlement website.
- Contact the settlement administrator for assistance with claims or questions.
Potential Compensation Amounts
The amount claimants can receive depends on the total number of approved claims and the distribution formula set forth in the settlement. Typically, individual payments are capped at $147, but the exact amount may vary based on the total claims filed and the settlement fund’s remaining balance.
Sample Payment Breakdown
| Number of Claims | Approximate Payment per Claim |
|---|---|
| Up to 10,000 claims | $147 |
| 10,001 – 50,000 claims | $70 – $147 |
| Over 50,000 claims | Less than $70 |
Implications for Cash App and Financial Technology Companies
The case highlights increasing scrutiny over how digital financial services communicate with consumers, especially regarding marketing practices. Regulators, including the Federal Trade Commission (FTC), have emphasized transparency and obtaining clear consent before sending promotional messages. Companies like Cash App are now under pressure to review their communication policies to prevent future legal challenges and ensure compliance with federal laws such as the TCPA. Consumers are encouraged to stay vigilant and exercise their rights to opt out of unwanted marketing communications.
Additional Resources
- Telephone Consumer Protection Act (TCPA) – Wikipedia
- Forbes — Consumer Privacy and Data Laws
- Official Settlement Website for Claims
Frequently Asked Questions
Who is eligible to receive settlement payments from the Cash App texting lawsuit?
Eligible Cash App users who received unsolicited text messages related to the service are eligible to claim settlement payments. The lawsuit focuses on violations of telemarketing laws involving these messages.
How much can I potentially receive from the settlement?
Participants may be eligible to receive up to $147 in settlement payments, depending on the number of claims filed and the specifics of their involvement in the lawsuit.
What is the deadline to file a claim for the settlement?
The deadline to submit a claim for the settlement is typically outlined in the official settlement notice. It is important to check the settlement website for the exact filing deadline and ensure your claim is submitted on time.
How do I file a claim for the Cash App texting lawsuit settlement?
You can file a claim online through the official settlement website. The process involves providing certain personal information and details about your text message experiences with Cash App.
Will I need to provide proof to receive the settlement payment?
In most cases, proof is not required to file a claim for the settlement. However, keeping records of any unsolicited texts or communications may be helpful if further information is requested during the process.
