Block, Inc. Faces Class Action Over Alleged Securities Fraud: Investors Encouraged to Join

Block, Inc. Faces Class Action Lawsuit Over Alleged Securities Fraud

Bensalem, Pennsylvania, January 29, 2025 — Investors of Block, Inc. (NYSE: SQ; XYZ) who have endured significant financial losses now have a potential avenue to pursue justice. The Law Offices of Howard G. Smith has announced an opportunity for these investors to lead a class-action lawsuit concerning allegations of securities fraud committed by the company.

Who Can Participate?

The lawsuit seeks to draw in investors who suffered losses due to the alleged actions of Block, specifically from February 26, 2020, to April 30, 2024. Those affected must reach out to the Law Offices of Howard G. Smith before March 18, 2025, to become a lead plaintiff in this class action.

For more detailed inquiries, investors can connect via email at [email protected], by phone at (215) 638-4847, or by visiting their website at Howard Smith Law.

What Are the Allegations?

The complaints lodged against Block raise serious concerns about the company’s operational practices over a span of several years. Key allegations include:
1. Widespread Compliance Failures: Block purportedly failed to conduct essential due diligence regarding the identities of its customers or the nature of their transactions. This lack of oversight allowed for the company's payment platforms, Square and Cash App, to potentially facilitate illegal activities.
2. Creating a Haven for Illicit Activities: By implementing lax account-opening practices and encouraging the use of cryptocurrency, Block allegedly became a platform for numerous unlawful activities, including money laundering and drug trafficking.
3. Failure to Act on Red Flags: Despite numerous internal reports highlighting compliance issues, Block’s senior leadership and Board of Directors allegedly did not rectify these deficiencies.
4. Materially Misleading Statements: The lawsuit claims that Block’s positive affirmations regarding their business practices were misleading, lacking a factual basis, and obscured the significant risks that could impact the company’s reputation, compliance standing, and profitability.

The lawsuit highlights the damaging implications not only on the investors but also on the operational integrity of Block, suggesting a systemic issue that needs addressing.

Next Steps for Investors

Investors wishing to join this class action should note that they are not required to take immediate action. Becoming part of the class does not require any upfront commitments, and individuals are free to hire their own counsel or remain passive members of the class.

For further details about the legal proceedings or to understand your rights regarding this situation, the Law Offices of Howard G. Smith remain open for inquiries. Direct contact can be made through their Pennsylvania office, or investors can explore their website for more information.

Conclusion

This class-action lawsuit represents an opportunity for Block, Inc. investors to seek redress for the losses incurred due to alleged securities fraud. The complexities surrounding this case shed light on the broader issues within corporate compliance and accountability in the financial sector. Interested parties are encouraged to act before the lead plaintiff deadline of March 18, 2025, to ensure their voices are heard in this evolving legal challenge.