Proposed Class Action Against Block, Inc. Highlights Securities Fraud Allegations
On January 28, 2025, Pomerantz LLP revealed the initiation of a class action lawsuit against Block, Inc., known on the NYSE as SQ. This lawsuit stems from serious allegations concerning the company’s alleged involvement in securities fraud and improper business practices. Shareholders who bought Block securities during the designated class period are urged to take action. They are advised to contact attorney Danielle Peyton at Pomerantz for more information about joining the class action. The lawsuit raises significant concerns regarding the ethical practices of Block and its executives in managing investor securities.
This class action lawsuit comes against a backdrop of troubling reports concerning Block's mobile payment service, Cash App. On February 16, 2024, NBC News reported that federal regulators were investigating allegations from whistleblowers claiming that Cash App had inadequate procedures for user verification, potentially facilitating activities such as money laundering and terrorist financing. These allegations suggested Cash App was operating a 'shadow financial system' that bypassed regulatory oversight. Furthermore, the whistleblowers claimed that Cash App had processed transactions with entities under US sanctions and facilitated illegal activities involving the sale of personal and financial information. Following the revelations, the price of Block's Class A common stock plummeted by nearly 5.5%, indicating a strong market reaction to these allegations.
The situation escalated further in May 2024 when it was reported that federal prosecutors initiated an investigation into Block due to accusations from a former employee. This employee claimed the company engaged in significant compliance violations over an extended period, particularly within its subsidiaries, Square and Cash App. Evidence was provided indicating that Block failed to perform essential due diligence on customers and was involved in processing transactions with countries under economic sanctions. These revelations considerably impacted investor confidence, resulting in another significant dip in the stock price, falling by over 8.4% on May 1, 2024.
Pomerantz LLP has an established reputation as a leader in corporate and securities litigation, with a legacy initiated by its founder, Abraham L. Pomerantz. Over the past 85 years, the firm has committed to representing the victims of corporate misconduct and securities fraud in class action lawsuits. With their extensive experience and proven record of securing substantial recoveries for class members, Pomerantz is determined to advocate for harmed investors from Block, Inc.
Shareholders of Block, Inc. who may have sustained losses due to these troubling allegations are encouarged to participate in the class action lawsuit before the March 18, 2025 deadline. This lawsuit not only seeks to hold Block accountable for any wrongdoing but also aims to recover losses sustained by shareholders during this alarming period. Investors can find further information on the complaint and how to join this legal action by visiting Pomerantz LLP's official website at www.pomerantzlaw.com.
This class action lawsuit comes against a backdrop of troubling reports concerning Block's mobile payment service, Cash App. On February 16, 2024, NBC News reported that federal regulators were investigating allegations from whistleblowers claiming that Cash App had inadequate procedures for user verification, potentially facilitating activities such as money laundering and terrorist financing. These allegations suggested Cash App was operating a 'shadow financial system' that bypassed regulatory oversight. Furthermore, the whistleblowers claimed that Cash App had processed transactions with entities under US sanctions and facilitated illegal activities involving the sale of personal and financial information. Following the revelations, the price of Block's Class A common stock plummeted by nearly 5.5%, indicating a strong market reaction to these allegations.
The situation escalated further in May 2024 when it was reported that federal prosecutors initiated an investigation into Block due to accusations from a former employee. This employee claimed the company engaged in significant compliance violations over an extended period, particularly within its subsidiaries, Square and Cash App. Evidence was provided indicating that Block failed to perform essential due diligence on customers and was involved in processing transactions with countries under economic sanctions. These revelations considerably impacted investor confidence, resulting in another significant dip in the stock price, falling by over 8.4% on May 1, 2024.
Pomerantz LLP has an established reputation as a leader in corporate and securities litigation, with a legacy initiated by its founder, Abraham L. Pomerantz. Over the past 85 years, the firm has committed to representing the victims of corporate misconduct and securities fraud in class action lawsuits. With their extensive experience and proven record of securing substantial recoveries for class members, Pomerantz is determined to advocate for harmed investors from Block, Inc.
Shareholders of Block, Inc. who may have sustained losses due to these troubling allegations are encouarged to participate in the class action lawsuit before the March 18, 2025 deadline. This lawsuit not only seeks to hold Block accountable for any wrongdoing but also aims to recover losses sustained by shareholders during this alarming period. Investors can find further information on the complaint and how to join this legal action by visiting Pomerantz LLP's official website at www.pomerantzlaw.com.
Topics Financial Services & Investing）
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