What Is the Cash App Lawsuit?
The Cash App lawsuit is a group of separate legal and regulatory actions against Block, Inc., not one single case, brought over two data breaches, unwanted marketing text messages, and widespread failures to protect users from fraud on the Cash App payment platform.
The two class actions are Salinas v. Block (data breach, resolved for $15 million) and Bottoms v. Block (unwanted referral-program text messages sent to Washington residents, resolved for $12.5 million). Separately, the Consumer Financial Protection Bureau (CFPB) ordered Block to pay a penalty and fund a $120 million consumer redress program over fraud-handling failures, and 46 state attorneys general reached a $45 million multistate settlement addressing the same underlying fraud-protection complaints from a consumer-protection angle rather than a private lawsuit.
Block, Inc., formerly known as Square, is the named defendant across all four matters. It owns and operates Cash App, the peer-to-peer payment platform at the center of every proceeding described on this page.
Why Are People Filing Cash App Lawsuits?
People are filing Cash App lawsuits because plaintiffs and regulators allege Block failed to secure user data, sent unwanted marketing texts without proper consent, and misrepresented how well Cash App protected users from fraud. Each proceeding targets a distinct piece of that broader pattern rather than one shared legal theory.
The Salinas data-breach case alleges Block was negligent in 2022, when a former employee accessed account data without authorization, and again in 2023, when an unauthorized user exploited recycled phone numbers to access Cash App accounts. The complaint alleges Block failed to implement adequate safeguards after the first incident and failed to adequately resolve customer complaints about unauthorized transactions.
The Bottoms case alleges Block's Invite Friends referral feature substantially assisted users in sending unsolicited commercial text messages to their contacts, in violation of Washington's commercial electronic mail and text messaging statute, over a period stretching from November 2019 to August 2025.
The CFPB and the 46-state multistate investigation both center on the same underlying complaint: that Cash App marketed itself as a safe, bank-like alternative while its fraud protections, verification standards, and customer support lagged behind, leaving victims of scams and unauthorized transactions with limited ways to recover stolen funds.
What Injuries Are Included in the Cash App Lawsuit?
The Cash App lawsuit includes three distinct categories of harm, spread across the separate proceedings described above: unauthorized access to account data, unwanted marketing text messages, and inadequate fraud protection. Each is defined in plain language below, followed by what plaintiffs and regulators specifically alleged. Block has denied wrongdoing in every settled matter.
Unauthorized Data Access
Unauthorized data access is when someone views or downloads account information without the account holder's or the company's permission.
The Salinas complaint alleges a former Block employee downloaded reports containing data for some U.S. Cash App and Cash App Investing users without authorization in 2021, an incident Block disclosed in a 2022 SEC filing affecting roughly 8.2 million current and former users. It further alleges a second, separate incident in 2023 in which an unauthorized user accessed some accounts by exploiting recycled phone numbers still linked to those accounts.
Unwanted Marketing Text Messages
An unwanted marketing text message is a commercial text sent to someone who did not clearly and affirmatively consent to receive it in advance.
The Bottoms complaint alleges Cash App's Invite Friends referral program, which offered users a $5 bonus for texting a referral code to contacts, resulted in unsolicited commercial texts being sent to people who never used Cash App and never agreed to receive them, specifically Washington residents protected by that state's commercial text messaging law.
Fraud-Protection and Customer-Service Failures
A fraud-protection failure, in this context, is a gap between what a financial platform promises about protecting and refunding defrauded users and what it actually delivers.
The CFPB's order and the 46-state multistate settlement both allege Cash App marketed itself as a safe, bank-like alternative for direct deposit of paychecks and government benefits while its verification standards lagged, it had no phone support until 2021 despite listing a support number on its cards, and it delayed fraud investigations and issued unwarranted account lockouts that left scam victims without a clear path to recover stolen funds.
Who Qualifies for the Cash App Lawsuit?
You may qualify if:
- You had a Cash App or Cash App Investing account with unauthorized or fraudulent activity between August 23, 2018 and August 20, 2024 (the Salinas data-breach settlement class)
- You had a Washington telephone area code and received a Cash App Invite Friends text message between November 14, 2019 and August 7, 2025 without prior consent (the Bottoms spam-text settlement class)
- You were a Cash App user affected by a fraud dispute Block mishandled, potentially covered by the CFPB's $120 million redress fund, which was distributed automatically with no claim form required
You may not qualify if:
- You did not experience unauthorized account access, a qualifying referral text, or a mishandled fraud dispute within the windows above
- You did not file a claim before each fund's own deadline; every claims-filing deadline described on this page has now passed
These settlements are closed to new claims as of this writing. This eligibility summary describes who was historically covered, not an open opportunity to file. If you believe you were owed a payment you never received, contact the relevant settlement administrator directly rather than filing a new claim.
What Is the Current Status of the Cash App Lawsuit?
The current status of the Cash App lawsuit is fully settled across every identified proceeding, with all claims-filing deadlines closed as of this writing. What remains is payment distribution, not active litigation, in each of the four matters described below.
Salinas v. Block, Inc. (Data Breach Class Action)
Block and Cash App Investing denied any liability or wrongdoing but agreed to resolve the data-breach class action for $15 million. Electronic payments to approved claimants began April 10, 2025, with paper checks following April 20, 2025.
| Proceeding Type | Federal class action, data breach negligence claims |
| Defendant | Block, Inc. and Cash App Investing, LLC |
| Settlement Amount | $15,000,000 |
| Claims Deadline | Passed (settlement website confirms no new claims accepted) |
| Payments Began | April 10, 2025 (electronic), April 20, 2025 (paper checks) |
Bottoms v. Block, Inc. (Washington Spam-Text Class Action)
U.S. District Judge John Chun in Seattle granted final approval of the $12.5 million settlement, calling it fair, reasonable, and adequate, and dismissed the case. The court awarded $3.1 million in attorney fees and a $10,000 service award to the class representative, Kimberly Bottoms, leaving roughly $8.7 million for class members who filed a timely claim.
| Proceeding Type | Federal class action, Washington commercial text messaging statute |
| Court | U.S. District Court, Western District of Washington (Judge John Chun) |
| Defendant | Block, Inc. |
| Settlement Amount | $12,500,000 |
| Per-Claimant Estimate | $88 to $147 (later reported at $394.36 per payment when checks issued) |
| Claims Deadline | October 27, 2025 (passed); payments began February 2, 2026 |
CFPB Enforcement Order Over Fraud-Handling Failures
The Consumer Financial Protection Bureau ordered Block to pay $175 million combined, consisting of a civil penalty and a fund to compensate defrauded users, over findings that Cash App failed to investigate fraud complaints and issue refunds as required by the Electronic Fund Transfer Act. The $120 million consumer redress portion was distributed automatically to eligible users with no claim form required.
| Proceeding Type | Federal regulatory enforcement order, not a private lawsuit |
| Agency | Consumer Financial Protection Bureau (CFPB) |
| Total Ordered | $175,000,000 (penalty plus consumer redress fund) |
| Consumer Redress Fund | $120,000,000, distributed automatically, no claim required |
| Order Date | January 2025 |
46-State Multistate Consumer Protection Settlement
Attorneys general from 46 states, co-led by Oregon and Texas, reached a consent judgment resolving allegations that Block misled consumers about Cash App's safety and failed to deliver the fraud protections and customer support it advertised. The settlement was filed in Oregon state court, with parallel consent judgments entered in the participating states, and requires Block to maintain 24-hour customer support and stop making misleading safety claims going forward.
| Proceeding Type | Multistate attorney general consumer-protection settlement |
| States Involved | 46 states (co-led by Oregon and Texas) |
| Direct Settlement Payment | $45,000,000 |
| Additional Consumer Compensation | Reported at $75 million to $120 million in victim compensation (total matter up to roughly $165 million) |
| Filed | State court in Oregon, July 2026 |
How Much Did the Cash App Lawsuit Settle For?
Block has paid more than $295 million combined across the four confirmed Cash App proceedings, not one single settlement figure. That total includes the $15 million data-breach fund, the $12.5 million spam-text fund, the $45 million multistate direct payment (plus up to roughly $120 million in additional victim compensation under that same matter), and the CFPB's $175 million order.
Every one of these totals reflects an actual court-approved or agency-ordered settlement figure, not a speculative estimate, since each matter has already resolved. No new Cash App class action or settlement fund is currently accepting claims as of this writing.
Individual payouts varied widely by matter: Bottoms class members were later reported to receive $394.36 per payment once checks went out, while the CFPB's $120 million redress fund was distributed automatically to eligible fraud victims without any claim form at all.
Cash App Lawsuit Updates
Here is the current status of the Cash App lawsuit, updated with new filings, rulings, and settlement developments as they're confirmed. Every proceeding identified on this page has already settled, so recent updates track distribution, not new litigation.
Cash App Lawsuit Timeline of Events
Block Reaches $45 Million Multistate Settlement Over Fraud Protection Claims
Block agreed to a $45 million settlement with attorneys general from 46 states, resolving allegations that Cash App misled consumers about its safety and fraud protections, with an additional $75 million to $120 million in required victim compensation reported alongside the direct payment.
Bottoms Spam-Text Settlement Payments Begin
Payments in the $12.5 million Bottoms v. Block Washington spam-text settlement began going out to approved claimants on February 2, 2026, with individual payments later reported at $394.36 each.
Court Holds Fairness Hearing in the Bottoms Spam-Text Case
The federal court overseeing Bottoms v. Block held its fairness hearing on December 2, 2025, the final procedural step before Judge John Chun's later final approval of the $12.5 million settlement.
Claims Deadline Passes in the Bottoms Spam-Text Settlement
October 27, 2025 was the claims-filing deadline for the Bottoms v. Block Washington spam-text settlement class, after which no further claim forms were accepted.
Data Breach Settlement Payments Begin
Electronic payments in the $15 million Salinas v. Block data-breach settlement began going out to approved claimants on April 10, 2025, with paper checks following on April 20, 2025.
CFPB Orders Block to Pay $175 Million Over Fraud-Handling Failures
The Consumer Financial Protection Bureau ordered Block to pay $175 million combined, including a $120 million fund to automatically compensate defrauded Cash App users, after finding the company failed to investigate fraud complaints and issue required refunds.
Data Breach Settlement Class Period Closes
August 20, 2024 marked the end of the class period for the Salinas v. Block data-breach settlement, which covered unauthorized or fraudulent Cash App account activity dating back to August 23, 2018.
Second Cash App Security Incident Alleged
Plaintiffs in the Salinas case allege a second, separate incident in 2023 in which an unauthorized user accessed some Cash App accounts by exploiting recycled phone numbers still linked to those accounts.
Block Discloses Former-Employee Data Access in SEC Filing
Block disclosed in a 2022 U.S. Securities and Exchange Commission filing that a former employee had downloaded reports containing data for roughly 8.2 million current and former Cash App users without authorization.
How to File a Cash App Lawsuit
Filing a Cash App lawsuit typically follows the 4 steps below.
- Check whether you were in a covered class: Review the eligibility windows above for the data-breach, spam-text, and fraud-redress matters, since each covered a different group of Cash App users over a different time period.
- Look up your specific settlement administrator: Each matter had its own dedicated claims site (for example, the Salinas data-breach fund and the Bottoms spam-text fund were administered separately), and that site is the authoritative source on whether a given claim window is still open.
- Confirm the claims deadline has not passed: Every identified Cash App settlement's claims deadline has already passed as of this writing, so confirm current status directly with the administrator rather than assuming a new claim can still be filed.
- Watch for a new proceeding rather than reopening a closed one: A closed settlement generally cannot be reopened for a late claim; if a new Cash App-related lawsuit or regulatory action is filed in the future, it would be a separate matter with its own eligibility rules.
Cash App Lawsuit is no longer accepting new claims. Every identified Cash App settlement (the data breach fund, the Washington spam-text fund, and the CFPB redress fund) has already closed its claims window as of this writing.
What Did Block Allegedly Know About Cash App's Security and Fraud Gaps?
Across all four proceedings, the allegations describe the same underlying pattern: Block knew or should have known its security and fraud-protection practices lagged behind its marketing claims, and continued marketing Cash App as safe anyway. Block has not been found liable in any of these matters and has denied wrongdoing in each settlement.
Block, Inc. is the parent company of Cash App and was formerly known as Square before its 2021 rebrand. The CFPB's order and the multistate settlement both allege Block aggressively promoted direct deposit of paychecks and government benefits into Cash App, specifically targeting consumers likely to treat it as a primary bank account, while its fraud-verification standards and customer support did not keep pace with the broader banking industry, including a years-long absence of phone support before 2021.
Frequently Asked Questions
What is the Cash App lawsuit about?
The Cash App lawsuit is actually several separate proceedings against Block, Inc., Cash App's parent company: a data-breach class action, a spam-text class action, a CFPB enforcement order, and a 46-state multistate consumer-protection settlement. Each addresses a different alleged failure, from unauthorized account access to unwanted marketing texts to inadequate fraud protection.
Is the Cash App lawsuit a class action?
Two of the four proceedings are class actions: Salinas v. Block over the 2022 and 2023 data breaches, and Bottoms v. Block over unwanted referral-program text messages. The other two, the CFPB order and the 46-state multistate settlement, are regulatory enforcement actions brought by government agencies rather than private class actions.
Who is the defendant in the Cash App lawsuit?
Block, Inc., formerly known as Square, is the named defendant across every proceeding described on this page. Block owns and operates Cash App and has denied wrongdoing in each settled matter while agreeing to the payment amounts and practice changes described above.
Has the Cash App lawsuit settled?
Yes. All four identified proceedings have settled or resolved: the $15 million data-breach class action, the $12.5 million spam-text class action, the CFPB's $175 million order, and the $45 million multistate settlement, for a combined total of more than $295 million paid by Block.
Can I still file a claim in the Cash App settlement?
No. Every claims-filing deadline identified in these matters has already passed as of this writing, including the data-breach settlement, the spam-text settlement, and the CFPB's automatic redress fund, which required no claim form at all. Contact the specific settlement administrator directly if you believe you were owed a payment you never received.
How do I know which Cash App settlement applied to me?
It depends on which harm you experienced: the data-breach settlement covered unauthorized Cash App account activity between August 2018 and August 2024, the spam-text settlement covered Washington residents who received unwanted Invite Friends texts between November 2019 and August 2025, and the CFPB's redress fund covered users whose fraud disputes Block mishandled, distributed automatically with no claim required.