XYZ INVESTOR DEADLINE: Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against Block, Inc. and Announces Opportunity for Investors with Substantial Losses to Lead Class Action Lawsuit

Core Viewpoint - Block, Inc. is facing a class action lawsuit due to allegations of compliance failures and misleading statements regarding its financial technology platforms, Square and Cash App, which allegedly facilitated illegal activities [3][4][5]. Group 1: Lawsuit Details - The class action lawsuit, Gonsalves v. Block, Inc., allows purchasers of Block Class A common stock from February 26, 2020, to April 30, 2024, to seek lead plaintiff status by March 18, 2025 [1]. - The lawsuit alleges that Block engaged in widespread compliance lapses, failing to conduct due diligence on customer identities and transactions, which allowed illegal activities to proliferate on its platforms [3][4]. Group 2: Allegations Against Block - Specific allegations include that Block created a haven for illegal activities by imposing minimal obligations on customers, encouraging bitcoin use, and pressuring banking partners to bypass due diligence [3]. - The lawsuit claims that thousands of transactions on Square and Cash App were linked to serious illegal activities, including money laundering and terrorism financing [3]. - Block's leadership allegedly ignored numerous red flags and internal reports regarding compliance deficiencies, leading to inflated user metrics through fake accounts [3][6]. Group 3: Impact on Stock Price - Following the publication of a critical report by Hindenburg Research on March 23, 2023, Block's stock price fell nearly 15% [4]. - Subsequent disclosures of investigations by the SEC and DOJ led to further declines in stock price, with a nearly 14% drop on August 3, 2023, and over 5% on February 16, 2024 [5][6]. - A report on May 1, 2024, regarding federal investigations into compliance lapses resulted in an additional stock price decline of over 8% [7][8].