#United States #San Diego #Class Action #Robbins LLP #Inc. #Block

Robbins LLP Files Class Action on Behalf of Block, Inc. Investors

On January 19, 2025, Robbins LLP, a prominent law firm specializing in shareholder rights, revealed that a class action lawsuit has been filed on behalf of all individuals and entities that acquired Block, Inc. (NYSE: SQ) Class A common stock between February 26, 2020, and April 30, 2024. This legal action stems from serious allegations regarding the company’s compliance practices, leading to claims that it significantly misled investors.

The Allegations

According to the lawsuit, Block, a financial technology conglomerate, failed to disclose several critical issues during the aforementioned period. These issues included extensive and long-standing compliance failures at its Square and Cash App platforms. Key documents indicate that Block neglected to perform essential due diligence investigations related to its customers' identities and transactional activities. This negligence allegedly allowed the platforms to be exploited for various illegal activities.

Specifically, the complaint outlines that:

• - Widespread Compliance Failures: Block is accused of creating an environment conducive to illicit activities by imposing minimal requirements for account openings and transactions.
• - Facilitation of Illegal Transactions: The platforms were reportedly used for a range of crimes including money laundering, sex trafficking, and drug trafficking, with numerous transactions tied to these activities.
• - Management Negligence: Internal reports and numerous red flags indicating compliance deficiencies were allegedly ignored by Block’s senior leadership and Board of Directors.
• - Fraudulent Account Openings: It is claimed that customers could open multiple accounts using fake identities, thus engaging in illegal activities without being flagged by Block’s security measures.
• - Inflation of Performance Metrics: Block's user metrics were purportedly boosted by the presence of these fraudulent accounts, distorting the company's actual performance and undermining investor trust.

These serious allegations highlight a material risk that was not disclosed to investors, exposing Block to potential regulatory repercussions, reputational damage, and adverse operational impacts. Following revelations pertaining to these compliance failures, Block's stock price experienced a decline, adversely affecting its investors.

What’s Next for Affected Investors?

For shareholders negatively impacted by Block's alleged actions, Robbins LLP has laid out the pathway for participating in the class action. Those who wish to assume the role of lead plaintiff—which involves representing the class in guiding the litigation—are encouraged to contact Robbins LLP for more details. Importantly, potential class members are not required to participate actively in the lawsuit to qualify for any potential recovery from settlements.

Robbins LLP utilizes a contingency fee structure, meaning that shareholders incur no out-of-pocket expenses unless the case is successful.

About Robbins LLP

Established in 2002, Robbins LLP has gained a reputation as a leader in shareholder rights litigation. The firm's mission revolves around aiding shareholders in recovering their losses, enhancing corporate governance, and holding negligent corporate executives accountable.

For those interested in staying informed about the progress of this class action or other corporate misconduct notifications, Robbins LLP invites individuals to sign up for their alert system, Stock Watch.

For further information or if you wish to reach out, contact:
Aaron Dumas, Jr.
Robbins LLP
5060 Shoreham Pl., Ste. 300
San Diego, CA 92122
Email: [email protected]
Phone: (800) 350-6003
Website: www.robbinsllp.com