Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 21, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Block, Inc. ("Block" or the "Company") (NYSE: SQ; XYZ) investors of a class action representing investors that bought securities between February 26, 2020 and April 30, 2024, inclusive (the "Class Period"). Block investors have until March 18, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On March 23, 2023, Hindenburg Research published a report accusing Block of exploiting the very demographics it claims to help, and of showing a “willingness to facilitate fraud against consumers and the government.” The report also claimed that the company avoided regulation, presented predatory loans and fees as innovative technology, and misled investors with inflated performance metrics. Additionally, it stated that Block had significantly exaggerated its user numbers while downplaying its customer acquisition costs. The report further alleged that Block’s compliance practices enabled bad actors to create fraudulent accounts for identity theft and other scams, allowing them to quickly steal funds.
In response to these claims, Block’s stock price dropped by $10.77, or 14.8%, closing at $61.88 per share on March 23, 2023, resulting in investor losses.
On August 3, 2023, Block revealed that both the SEC and the U.S. Department of Justice were investigating the allegations raised in the Hindenburg report. This news caused Block’s stock price to fall by $10.03, or 13.6%, bringing it down to $63.52 per share on August 4, 2023.
Then, on February 16, 2024, NBC News reported that federal regulators were looking into claims from two whistleblowers that Cash App had failed to properly vet its users. The whistleblowers claimed that the company lacked effective procedures to verify users' identities, potentially opening the door to money laundering, terrorism financing, and other illegal activities. As a result, Block’s stock price dropped by $3.84, or 5.5%, closing at $65.64 per share on February 16, 2024.
Later, on May 1, 2024, NBC News reported that federal prosecutors had launched an investigation into Block following allegations by a former employee that the company had engaged in long-standing compliance failures across its key platforms, Square and Cash App. The former employee provided internal documents to prosecutors, suggesting that Block had neglected basic customer due diligence and had processed transactions for countries under economic sanctions, such as Cuba, Iran, Russia, and Venezuela, in addition to handling cryptocurrency transactions for terrorist organizations.
Following this news, Block’s stock price dropped by $6.16, or 8.4%, closing at $66.84 per share on May 1, 2024, leading to further investor losses.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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