SAN DIEGO, Jan. 22, 2025 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired Block, Inc. (NYSE: SQ) Class A common stock between February 26, 2020 and April 30, 2024. Block is a financial technology conglomerate.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Block, Inc. (SQ) Misled Investors Regarding the Company’s Compliance Leading to it Illegal Use
According to the complaint, during the class period, defendants failed to disclose: (a) that Block had engaged in widespread and years-long compliance lapses at Square and Cash App, including by failing to conduct basic due diligence regarding its customers’ identities or the nature of customer transactions so as to prevent the platforms from being used for illegal or illicit activities; (b) that Block had effectively created a haven for widespread illegal and illicit activities on its Square and Cash App platforms by imposing minimal obligations on customers seeking to open accounts, transact, and deposit or withdraw funds; encouraging the use of bitcoin; and pressuring the Company’s banking partners to forgo ordinary KYC due diligence activities; (c) that thousands of transactions on Square and Cash App were made in connection with a wide variety of illegal and illicit activities, including, inter alia, money laundering, child sexual abuse, sex trafficking, drug trafficking, terrorism financing, contract killings, and illicit payments to entities and persons subject to economic sanctions; (d) that Block allowed its customers to withdraw funds even after the accounts had been flagged for potentially illegal or illicit activities; (e) that Block customers could open up multiple accounts using fake identities in order to engage in illegal or illicit activities; (f) that Block’s senior leadership and the Board had failed to correct identified compliance deficiencies despite numerous red flags, internal employee reports of deficiencies, and customer complaints; (g) that Block’s Cash App user metrics had been artificially inflated through the use of fake accounts and the ability of criminals and other bad actors to open multiple accounts; and (h) that, as a result of (a)-(g) above, Block was subject to a material, undisclosed risk of its conduct being exposed, thereby exposing the Company to reputational harm, adverse regulatory actions, the loss of business activity, and adverse impacts to the Company’s operations and financial results.
On news of this wrongdoing, the price of Block’s stock declined, harming investors.
What Now: You may be eligible to participate in the class action against Block, Inc. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP for information. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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