#United States #New York #Class Action #Inc. #Securities Fraud #Block

Class Action Lawsuit Filed Against Block, Inc.

On February 25, 2025, Levi & Korsinsky, LLP issued a notification to shareholders of Block, Inc. regarding a proposed class action lawsuit aimed at recovering losses sustained due to alleged securities fraud. The case revolves around claims detailing serious compliance failures at Block, which operates the Square and Cash App platforms. The lawsuit seeks to address grievances of investors who were disadvantaged during a specific timeframe from February 26, 2020, to April 30, 2024.

Allegations Against Block, Inc.

The complaint lays out numerous allegations against Block, Inc. According to the filed documents, the company is accused of making false representations and failing to disclose important facts concerning its compliance measures:

1. Widespread Compliance Failures: Block reportedly failed to carry out essential due diligence on customer identities, allowing its platforms to be misused for numerous illegal activities.

2. Facilitation of Illicit Activities: By implementing minimal obligations for account setup, Block allegedly contributed to a permissive environment for crime, including money laundering and human trafficking activities.

3. Lax Control Over Transactions: The company is claimed to have permitted questionable transactions even when accounts were marked for potential illegal activity.

4. Fake Identities: The suit points out that customers could open multiple accounts using false identities, thereby engaging in numerous unlawful dealings.

5. Ignoring Warning Signals: Internal reports and customer complaints about compliance issues allegedly went unaddressed by Block's senior leadership.

6. Inflated User Metrics: The alleged existence of fake accounts enabled bad actors and inflated user metrics, misleading investors about the platform's reliability and safety.

7. Risk of Disclosure: The underlying risks of these conduct failures, including potential damages from regulatory actions and reputational harm, were reportedly not disclosed, putting Block's operations and fiscal health at serious risk.

What Investors Need to Know

For investors affected by this alleged misconduct, the law firm invites those who sustained losses during the defined time period to reach out regarding the potential recovery. Interested parties must act before the deadline of March 18, 2025, to request the court to designate them as a lead plaintiff. It's crucial to note that participating in this class action does not necessitate being a lead plaintiff to benefit from any monetary recovery.

Legal Representation

Levi & Korsinsky, LLP boasts a robust track record, securing substantial sums for aggrieved investors over the years. The firm employs a team of over 70 dedicated professionals focused on complex securities litigation, emphasizing their commitment to fighting for shareholder rights. Stakeholders can connect directly with attorneys Joseph E. Levi or Ed Korsinsky through their contact details provided below:

• - Email: [email protected]
• - Phone: (212) 363-7500
• - Address: Levi & Korsinsky LLP, 33 Whitehall Street, 17th Floor, New York, NY 10004

For shareholders, this class action lawsuit serves as an important reminder of the necessity to be vigilant and ensure that your investments are handled responsibly and transparently, especially in the rapidly evolving tech and financial sectors of today's market. Consequently, investors might want to stay informed regarding updates and outcomes related to this unfolding case and consider reaching out to legal representatives for assistance in navigating potential claims.