Block, Inc. Long-Term Shareholder Announcement: Johnson Fistel Encourages Investors to Reach Out For More Information About Continuing Investigation

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims against Block, Inc. to hold its officers and directors accountable for alleged damages caused to the company [1] Group 1: Legal Rights and Shareholder Information - Shareholders who owned Block, Inc. shares before February 26, 2020, may have legal rights to pursue claims against the company's officers and directors [2] - A previous class action lawsuit was filed for shareholders who acquired stock between February 26, 2020, and April 30, 2024, excluding those who purchased shares before this period from recovery [2] Group 2: Allegations Against Block, Inc. - The complaint alleges that Block engaged in significant compliance failures at Square and Cash App, including inadequate due diligence on customer identities and transactions [3] - It is claimed that Block created an environment conducive to illegal activities by allowing minimal obligations for account creation and transactions, and by encouraging the use of bitcoin [3] - Allegations include that Block's platforms facilitated various illegal activities such as money laundering, child sexual abuse, sex trafficking, drug trafficking, and terrorism financing [3] - The complaint states that Block allowed customers to withdraw funds from flagged accounts and permitted multiple accounts to be opened using fake identities [3] - Block's leadership allegedly failed to address known compliance issues despite numerous warnings and complaints [3] - The complaint suggests that user metrics for Cash App were artificially inflated due to the presence of fake accounts [3] - As a result of these issues, Block faced undisclosed risks that could lead to reputational damage, regulatory actions, and negative impacts on operations and financial results [3]