Block, Inc. (SQ, XYZ) Investors Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit

Core Viewpoint - Investors with significant losses in Block, Inc. have the opportunity to lead a securities fraud class action lawsuit against the company due to alleged compliance failures and misleading statements regarding its operations and risks [1][3]. Group 1: Allegations Against Block, Inc. - The lawsuit alleges that from February 26, 2020, to April 30, 2024, Block failed to disclose widespread compliance lapses at its Square and Cash App platforms, which allowed for illegal activities [3]. - Block allegedly created an environment conducive to illegal activities by imposing minimal obligations on customers and encouraging the use of bitcoin, while pressuring banking partners to bypass due diligence [3]. - Thousands of transactions on Block's platforms were linked to illegal activities, including money laundering, child sexual abuse, and drug trafficking [3]. - Block reportedly allowed customers to withdraw funds from flagged accounts and permitted multiple accounts to be opened using fake identities [3]. - Senior leadership and the Board of Directors are accused of failing to address known compliance issues despite numerous warnings and complaints [3]. - The user metrics for Cash App were allegedly inflated through the use of fake accounts, contributing to a material risk of reputational harm and regulatory actions [3]. - Positive statements made by Block regarding its business and prospects were claimed to be materially misleading and lacked a reasonable basis [3].