Pomerantz Law Firm Launches Class Action Against Block, Inc. Over Allegations of Securities Fraud
Pomerantz LLP has recently announced the filing of a class action lawsuit against Block, Inc. (NYSE: SQ), bringing significant attention to potential misconduct within the company. According to the firm, the lawsuit addresses allegations of securities fraud and other unlawful business practices, raising concerns among investors and stakeholders.
This class action comes after reports emerged of federal investigations against Block, particularly focusing on its mobile payment service, Cash App. On February 16, 2024, NBC News detailed complaints from whistleblowers who claimed that Cash App failed to perform adequate due diligence on its users. The allegations suggested that the service could facilitate illegal activities, such as money laundering and terrorism financing, due to the company's purported lack of effective procedures for establishing user identities. One whistleblower described Cash App as operating a 'shadow financial system' that allowed transactions with sanctioned entities and illicit operations.
Following these accusations, the stock price of Block’s Class A common shares saw a notable decline of $3.84, or 5.53%, settling at $65.64 by market close that day. This drop was a direct result of investor reactions to potential regulatory repercussions.
Further complicating the situation, another report by NBC News on May 1, 2024, revealed ongoing investigations by federal prosecutors into Block’s adherence to compliance regulations across its two primary divisions: Square and Cash App. A former employee of Block provided documents indicating that the company had not fulfilled basic due diligence on its clients and had processed numerous transactions involving countries subject to economic sanctions, such as Cuba, Iran, Russia, and Venezuela. Additionally, there were claims that Block had facilitated transactions for terrorist groups, intensifying the scrutiny around the company's operations. In response to this news, Block’s shares experienced another significant plunge, this time falling by $6.16 or 8.44%, on May 1, 2024, closing at $66.84 per share.
The class action lawsuit initiated by Pomerantz is open to investors who purchased or acquired Block securities during the relevant period. Individuals wishing to become Lead Plaintiffs must do so before the deadline of March 18, 2025. Potential participants are encouraged to reach out to Pomerantz LLP for further details, including the requirements to join the lawsuit.
Pomerantz LLP boasts a longstanding reputation as a leader in corporate and securities litigation, having successfully recovered billions of dollars for victims of financial misconduct over its 85-year history. With offices in major cities around the world, including New York and London, the firm continues to advocate for the rights of investors.
This class action is a crucial development for investors who have placed their trust and capital in Block, Inc., amidst growing concerns over the company’s operational integrity. Investors and stakeholders are advised to monitor this evolving situation closely, ensuring they are informed about the implications of these serious allegations.
This class action comes after reports emerged of federal investigations against Block, particularly focusing on its mobile payment service, Cash App. On February 16, 2024, NBC News detailed complaints from whistleblowers who claimed that Cash App failed to perform adequate due diligence on its users. The allegations suggested that the service could facilitate illegal activities, such as money laundering and terrorism financing, due to the company's purported lack of effective procedures for establishing user identities. One whistleblower described Cash App as operating a 'shadow financial system' that allowed transactions with sanctioned entities and illicit operations.
Following these accusations, the stock price of Block’s Class A common shares saw a notable decline of $3.84, or 5.53%, settling at $65.64 by market close that day. This drop was a direct result of investor reactions to potential regulatory repercussions.
Further complicating the situation, another report by NBC News on May 1, 2024, revealed ongoing investigations by federal prosecutors into Block’s adherence to compliance regulations across its two primary divisions: Square and Cash App. A former employee of Block provided documents indicating that the company had not fulfilled basic due diligence on its clients and had processed numerous transactions involving countries subject to economic sanctions, such as Cuba, Iran, Russia, and Venezuela. Additionally, there were claims that Block had facilitated transactions for terrorist groups, intensifying the scrutiny around the company's operations. In response to this news, Block’s shares experienced another significant plunge, this time falling by $6.16 or 8.44%, on May 1, 2024, closing at $66.84 per share.
The class action lawsuit initiated by Pomerantz is open to investors who purchased or acquired Block securities during the relevant period. Individuals wishing to become Lead Plaintiffs must do so before the deadline of March 18, 2025. Potential participants are encouraged to reach out to Pomerantz LLP for further details, including the requirements to join the lawsuit.
Pomerantz LLP boasts a longstanding reputation as a leader in corporate and securities litigation, having successfully recovered billions of dollars for victims of financial misconduct over its 85-year history. With offices in major cities around the world, including New York and London, the firm continues to advocate for the rights of investors.
This class action is a crucial development for investors who have placed their trust and capital in Block, Inc., amidst growing concerns over the company’s operational integrity. Investors and stakeholders are advised to monitor this evolving situation closely, ensuring they are informed about the implications of these serious allegations.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.