BLOCK(SQ) Prnewswire·2025-03-06 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][2]. Allegations Summary - The lawsuit claims that Block engaged in years-long compliance failures at Square and Cash App, failing to conduct due diligence on customer identities and transactions, allowing illegal activities to flourish [1]. - 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 [1]. - Specific illegal activities linked to Block's platforms include money laundering, child sexual abuse, sex trafficking, drug trafficking, terrorism financing, and contract killings [1]. - The company allegedly allowed customers to withdraw funds from flagged accounts and open multiple accounts using fake identities for illicit purposes [1]. - Block's leadership reportedly failed to address compliance deficiencies despite numerous warnings and complaints, leading to inflated user metrics through fake accounts [1]. - As a result of these actions, Block faces undisclosed risks of reputational harm, regulatory actions, and negative impacts on its operations and financial results [1]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by March 18, 2025, to monitor the case's progress and potentially seek lead plaintiff status [2]. - Registration is free and does not obligate shareholders to participate in the case [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].