BLOCK(SQ) Prnewswire·2025-01-29 03:00Core Viewpoint - A class action lawsuit has been filed against Block, Inc. concerning allegations of securities fraud and unlawful business practices [2]. Group 1: Allegations and Investigations - Federal regulators are investigating allegations from whistleblowers that Block's Cash App performed inadequate due diligence on users, potentially facilitating money laundering and other illegal activities [3]. - Whistleblowers described Block as operating a "shadow financial system" and detailed transactions with entities under U.S. sanctions, as well as operations selling personal information for illegal purposes [3]. - A former employee alleged that Block engaged in widespread compliance lapses, including processing transactions involving sanctioned countries and cryptocurrency transactions for terrorist groups [5]. Group 2: Stock Price Impact - Following the news of the investigations on February 16, 2024, Block's Class A common stock price fell by 65.64 [4]. - On May 1, 2024, after further allegations emerged, Block's Class A common stock price dropped by 66.84 [6]. Group 3: Legal Representation - Pomerantz LLP, a firm specializing in corporate and securities class litigation, is leading the class action lawsuit against Block [7].