Block Inc. Settles $12.5 Million Lawsuit Over Cash App Texts
- Block Inc. settles class-action lawsuit for $12.5M.
- Settlement affects approximately 2 million residents.
- Compensation to be between $88 and $147 per recipient.
Block Inc., headed by Jack Dorsey, agrees to a $12.5 million settlement for sending unsolicited text messages through its Cash App program to Washington residents from 2019 to 2025.
While no wrongdoing was admitted, the settlement highlights legal vulnerabilities in tech communications and underscores regulatory pressures on financial platforms.
Block Inc. Lawsuit Settlement
Block Inc., led by Jack Dorsey, has settled a lawsuit for $12.5 million. The lawsuit alleged that the Cash App referral program resulted in unsolicited texts sent to 2 million Washington residents.
Kimberly Bottoms, a Washington state resident, filed the lawsuit. The company admitted no wrongdoing but will notify those affected for eligibility compensation, estimated at $88–$147 per person. As Bottoms stated, “I believe tech companies should be held accountable for their marketing practices.”
Impacted individuals could receive compensation soon, with the settlement not affecting major cryptocurrencies. The case focused on compliance issues, not digital asset operations.
This settlement is among previous ones, showing the impact of regulatory compliance costs on tech companies. No ripple effects observed on institutional crypto exposure.
The focus lies on consumer protection laws in Washington. The court’s approval will finalize the settlement, signifying the end of long-standing litigation without affecting Bitcoin or other digital currencies.
Compliance costs remain a pressing issue for blockchain firms. Data shows that legal settlements often influence operational reviews, yet they seldom affect cryptocurrency prices unless primary operations are targeted.
