BLOCK(SQ) Prnewswire·2025-02-24 10:45Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Block, Inc. regarding a class action lawsuit alleging that the company engaged in widespread compliance lapses and failed to disclose material information that led to illegal activities on its platforms [1]. Allegations Summary - The complaint alleges that Block had significant compliance failures at Square and Cash App, including inadequate due diligence on customer identities and transactions, allowing illegal activities to flourish [1]. - 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 standard due diligence [1]. - Numerous transactions on Block's platforms were linked to illegal activities such as money laundering, child sexual abuse, sex trafficking, drug trafficking, terrorism financing, and contract killings [1]. - The company reportedly allowed customers to withdraw funds from flagged accounts and permitted the opening of multiple accounts using fake identities for illicit purposes [1]. - Senior leadership and the Board failed to address known compliance issues despite numerous warnings and complaints, leading to inflated user metrics through fake accounts [1]. - As a result of these actions, Block faced undisclosed risks that could harm its reputation, lead to regulatory actions, and negatively impact its financial results [1]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by March 18, 2025, to participate in the case without any cost or obligation [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [2]. Firm's Commitment - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices, seeking recovery for losses incurred due to misleading statements or omissions [3].