Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Block, Inc. due to allegations of widespread compliance failures and illegal activities associated with its platforms, Square and Cash App, which have led to significant stock price declines and regulatory scrutiny [2][4][5][6][7][9]. Group 1: Allegations Against Block, Inc. - The complaint alleges that Block engaged in years-long compliance lapses, failing to conduct due diligence on customer identities and transactions, allowing illegal activities to proliferate on its platforms [4]. - Block reportedly 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 [4]. - Allegations include that thousands of transactions on Square and Cash App were linked to illegal activities such as money laundering, sex trafficking, and terrorism financing [4]. - Block's leadership allegedly ignored numerous red flags and internal reports regarding compliance deficiencies, leading to inflated user metrics through fake accounts [4]. Group 2: Stock Price Impact - Following the publication of a damaging report by Hindenburg Research on March 23, 2023, Block's Class A common stock price fell nearly 15% [5]. - On August 3, 2023, after Block disclosed investigations by the SEC and DOJ, the stock price dropped nearly 14% [6]. - A report on February 16, 2024, regarding inadequate due diligence by Cash App led to a more than 5% decline in stock price [7]. - On May 1, 2024, news of federal prosecutors investigating Block for compliance lapses resulted in an over 8% drop in stock price [9]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses in Block are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options for participating in a federal securities class action [1][2]. - The deadline for seeking the role of lead plaintiff in the class action is March 18, 2025 [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3].