In a recent development, Cash App users are poised to benefit from a significant settlement stemming from a class-action lawsuit regarding unwanted spam text messages. The settlement, amounting to $12.5 million, could provide eligible individuals with one-time payments of up to $147.
The lawsuit was initiated by Kimberly Bottoms, a Washington resident, in November 2023, alleging that Cash App’s Invite Friends program resulted in the distribution of spam text messages. Those who received these texts since November 2019 may qualify for compensation. According to reports from CNET, around two million people could potentially receive payments from this settlement.
While Cash App’s parent company, Block, has agreed to the payout, it has not admitted any wrongdoing. Bottoms’ lawsuit claimed that Block violated the state’s Consumer Protection Act, prompting the legal action.
Although precise details of the settlement are still being finalized, affected individuals are expected to receive payments ranging from $88 to $147. Recipients will have two options for receiving their funds: either as a physical check or via direct deposit into their eBay or Venmo accounts.
Cash App, which boasts over 55 million users, has become increasingly popular, especially among younger demographics. According to Pew Research, nearly 40% of Americans aged 18 to 29 reported using the platform in a 2022 survey. Analysts predict that Cash App’s user base could grow to approximately 64.5 million by 2028.
Class-action lawsuits, such as this one, allow groups of individuals to collectively address grievances against companies. These suits are often settled to avoid the costs associated with prolonged litigation, with companies typically denying any wrongdoing as part of the settlement agreement.
In recent news, Cash App has experienced a decline in downloads, with a 15% drop reported in the fourth quarter of 2024. However, the company is actively enhancing its services, recently introducing a new tap-to-pay feature for business sellers that allows for contactless payments via the app.
This isn’t the first time Cash App has faced legal challenges; last year, the company agreed to pay $15 million related to a data breach settlement, offering eligible users up to $2,500 in compensation despite denying any wrongdoing.
As the situation unfolds, Cash App users who think they might be eligible for the settlement are encouraged to stay informed about the claims process. For more updates and details on this developing story, keep connected with us at HipHopRaisedMeTheBlog.com!
