Plaintiffs ask court to preliminarily approve $12 million Cash App settlement

On Oct. 9, 2026, David Tucker and Lucille Moragne asked the U.S. District Court for the Northern District of California to preliminarily approve a $12 million class action settlement with Block Inc., the company behind Cash App.

The settlement would resolve a class action lawsuit alleging Block failed to protect Cash App users from fraud as federal law requires.

The alleged crypto scam

Tucker and Moragne claim scammers drew them into a pig butchering scheme, which is a long-con crypto fraud. At the scammers' direction, they say they opened a Cash App account and sent money to Ultimate Partners Investments, which they believed was a crypto venture. However, the venture reportedly never existed, and both allegedly lost thousands of dollars to fraudulent accounts on the app.

The plaintiffs claim Block did not maintain the identity checks, transaction monitoring and suspicious activity reporting the Bank Secrecy Act requires of payment services like Cash App. Other claims include negligence, unfair business practices under California law and profiting unfairly from the fraudulent transactions.

What led to the settlement

Block won dismissal of the original complaint in December 2025, but the court let the plaintiffs amend it and later paused the case in April 2026 for mediation.

Block argued that the Bank Secrecy Act does not let individuals sue, that it earned only small fees on the transactions and that a court could never certify the class, according to court documents. The two sides reached the deal after a June 1, 2026, mediation session and 12 more weeks of talks.

Who qualifies for the Cash App settlement?

Current and former Cash App customers in the U.S. qualify for the settlement if they lost money to one or more potentially fraudulent transactions between Jan. 10, 2021, and the date the court grants preliminary approval.

Transactions the customer did not start or authorize, such as account takeovers, do not qualify. Block cannot tell which users lost money to scams, so anyone who sent money through the app during that period (about 160 million users) will receive an email notice.

How payments would work

To file a claim, class members will need to list the date and amount of each potentially fraudulent transaction, plus the $Cashtags of both the sender and the recipient. They would also need at least one form of proof, such as a document showing they reported the transaction to Cash App or police when it happened.

Approved claimants would split the net settlement fund after legal fees and other costs, with larger losses earning larger shares, and none of the money would go back to Block.

What happens next for Cash App users

Judge Maxine M. Chesney could take up the motion at a Nov. 13, 2026, hearing. If the court grants preliminary approval, a settlement administrator would email notices within 45 days and open a website and toll-free line for claims.

As of this writing, there is no claims process and no money available. Claim Depot will publish a settlement page with claim details once the claims process opens.