If you’re one of the millions of Americans who use Cash App to send money, buy stocks, or trade Bitcoin, you’ll want to lean in for this. You may have been eligible for a cash payment from a massive $27.5 million class-action settlement involving the app’s parent company, Block, Inc.
But what was the lawsuit about, who actually qualified for a piece of the pie, and most importantly, is it too late to get your money?
Let’s break down everything you need to know about the Cash App settlement.
What Was the Cash App Lawsuit All About?
This wasn’t about a data breach or stolen funds. The class-action lawsuit, officially known as Evans v. Block, Inc., was a bit more technical. The core of the complaint centered on the app’s Terms of Service.
Plaintiffs alleged that Block, Inc. (along with partner banks Sutton Bank and Lincoln Savings Bank) required users to agree to a provision that waived their right to a jury trial or to participate in a class-action lawsuit for any disputes. Instead, users were allegedly forced into individual arbitration. The lawsuit claimed that this arrangement violated the rights of account holders.
Essentially, the argument was that users were being unfairly restricted in how they could resolve a problem with the company. After a legal battle, Block, Inc. denied any wrongdoing but agreed to a $27.5 million settlement to resolve the claims and avoid further litigation.
Who Was Eligible for a Payout? (The Nitty-Gritty)
This is the key question everyone wants answered. You were considered a “Class Member” and included in the settlement if you met the following criteria:
- You resided in the United States.
- You had a Cash App account between October 16, 2015, and November 9, 2021.
- Your account was identified by a unique phone number or email address.
- You were subject to the specific Terms of Service containing the arbitration clause at issue.
If you checked all those boxes, you were likely part of the settlement class. Notices were sent out via email to eligible account holders, so it’s worth searching your inbox for any emails regarding the Evans v. Block, Inc. settlement.
The Big Question: Is It Too Late to Claim Your Money?
Unfortunately, for this specific settlement, the ship has sailed.
The deadline to submit a valid claim form was November 27, 2023.
In all class-action lawsuits, there is a strict, court-approved deadline for filing a claim. This ensures the settlement administration process can proceed, calculate payments, and distribute the funds in a timely manner. If you did not file a claim by that date, you are no longer able to receive a payment from this particular settlement.
How Much Were the Payouts?
While the $27.5 million figure sounds huge, it’s important to have realistic expectations. That total amount first gets reduced by court-approved attorney’s fees, administrative costs, and payments to the named plaintiffs.
The remaining “net settlement fund” is then divided among all the valid claimants. The final payment amount for each individual depended entirely on the number of people who submitted a valid claim. In settlements with millions of eligible members, individual payments are often modest, sometimes ranging from a few dollars to a couple of hundred dollars, but rarely a life-changing sum.
What Does This Mean for Your Cash App Account Now?
This lawsuit does not mean Cash App is unsafe to use for its intended purposes. The legal challenge was about contractual terms, not the security of your money or data.
Following lawsuits like this, companies often update their Terms of Service. It’s always a good practice for users to:
- Glance at updated terms: When an app notifies you of a change, take a minute to understand what’s new.
- Know your rights: Understand how the app handles disputes.
- Stay informed: Keep an eye on your email for official communications from services you use.
Frequently Asked Questions (FAQ)
Here are some quick answers to common questions about this settlement.
Was the Cash App settlement a scam?
No, it was a legitimate class-action lawsuit and settlement. The case was Evans v. Block, Inc., settled in a U.S. federal court.
Was this settlement related to a data breach?
No. This was entirely separate from any data breach incidents. The lawsuit was focused on the arbitration clauses in the Terms of Service.
How do I know if I was included in the settlement class?
The official settlement administrator would have sent a notice to the email address associated with your Cash App account if you were identified as an eligible member.
What should I do if I missed the deadline?
Unfortunately, once the claims deadline has passed, you can no longer receive a payment from that settlement. The best course of action is to keep an eye out for future settlements you may be eligible for.
Conclusion
While the $27.5 million Cash App settlement offered a chance for many users to receive a small cash payment, the window to claim that money has closed. This case serves as a powerful reminder of the importance of the often-ignored Terms of Service agreements and how class-action lawsuits can hold companies accountable.
