Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of Block, Inc. who purchased shares between February 26, 2020 and April 30, 2024.
Block and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On May 1, 2024, NBC News reported that federal prosecutors were investigating the Company due to allegations by a former employee that it had engaged in wide-ranging compliance lapses at its two main units, Square and Cash App and that the employee had provided prosecutors with internal documents demonstrating that Block had failed to conduct basic due diligence on its customers, that Square had processed thousands of transactions involving countries subject to economic sanctions (including Cuba, Iran, Russia, and Venezuela), and that Block had processed multiple cryptocurrency transactions for terrorist groups.
On this news, the price of Block’s Class A common stock fell over 8%, from a closing price of $73 per share on April 30, 2024, to $66.84 per share at market close on May 1, 2024.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until March 18, 2025 to request that the court appoint them lead plaintiff.