Important Information for Investors: Class Action Lawsuit against Block, Inc.
On January 27, 2025, Robbins Geller Rudman & Dowd LLP announced that individuals who purchased Block, Inc. (formerly Square, Inc.) Class A common stock between February 26, 2020, and April 30, 2024, both dates inclusive (the “Class Period”), may seek appointment as lead plaintiff in a securities fraud class action lawsuit against Block, Inc. and certain of its top executive officers. The lawsuit, named Gonsalves v. Block, Inc., No. 25-00642 (N.D. Cal.), alleges that the defendants violated the Securities Exchange Act of 1934.
Background
Block, Inc. is a technology-driven financial services and digital payments company, headquartered in San Francisco, California. The company operates under several business segments, including Seller, Cash App, and Point of Sale (Hardware). Seller enables sellers to accept and process transactions using various devices, including mobile phones, tablets, and point-of-sale terminals. Cash App offers peer-to-peer payments, direct deposit, and investment services. Point of Sale (Hardware) provides customized hardware and software solutions for businesses.
Allegations in the Lawsuit
The class action lawsuit alleges that Block, Inc. and its executives made false and misleading statements regarding the company’s business, operations, and financial condition, particularly with respect to its revenue growth, expansion plans, and the impact of regulatory scrutiny on its business. It is alleged that these statements were made to artificially inflate the stock price during the Class Period.
Impact on Individual Investors
If you purchased Block, Inc. Class A common stock during the Class Period, you may be able to recover your losses as a member of the proposed class. You may also be able to seek appointment as a lead plaintiff of the class action. To be eligible for membership in the class, you must have purchased Block, Inc. Class A common stock during the Class Period. To apply for lead plaintiff status, you must meet certain requirements and must be willing to help represent the interests of the class.
Impact on the World
The alleged securities fraud at Block, Inc. raises concerns for investors, as it highlights the importance of transparency and accuracy in corporate reporting. The lawsuit could result in significant financial consequences for Block, Inc. and its executives, potentially including damages, fines, and reputational harm. Moreover, it may lead to increased regulatory scrutiny of the company and the financial technology industry as a whole.
Conclusion
The securities fraud class action lawsuit against Block, Inc. and its executives is a significant development for investors and the financial technology industry. If you purchased Block, Inc. Class A common stock during the Class Period, you may be able to recover your losses as a member of the proposed class or seek appointment as a lead plaintiff. The lawsuit underscores the importance of accurate corporate reporting and transparency for investors.
As the case progresses, it will be essential for investors to stay informed about any developments related to the lawsuit and the company. For more information, please contact Robbins Geller Rudman & Dowd LLP for a free consultation.
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