Class Action Lawsuit Filed Against Block, Inc. for Securities Fraud
On February 28, 2025, The Schall Law Firm announced that it had filed a class action lawsuit against Block, Inc. (NYSE: SQ), formerly known as Square, Inc., for alleged violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The lawsuit was brought on behalf of investors who purchased the Company’s securities between February 26, 2020, and April 30, 2024, inclusive (the “Class Period”).
Allegations of Securities Fraud
According to the complaint, Block, Inc. made false and misleading statements and failed to disclose material information during the Class Period. Specifically, the Company allegedly failed to disclose that its revenue growth was primarily driven by the sale of Bitcoin, which was not sustainable, and that its gross profit margin was declining due to increased competition and higher operating costs. These misrepresentations led to artificially inflated stock prices.
Impact on Individual Investors
If you purchased Block, Inc.’s securities during the Class Period, you may be entitled to recover your losses, including damages. The Schall Law Firm encourages investors to contact the firm before March 18, 2025, to discuss their legal rights and potential remedies.
Impact on the World
The lawsuit against Block, Inc. is significant as it highlights the growing importance of transparency and accuracy in financial reporting, particularly in the tech industry. The allegations of securities fraud could potentially tarnish the reputation of the Company and impact investor confidence in the stock market as a whole.
Additional Information from Online Sources
According to reports, the lawsuit comes after a series of investigations into Block, Inc.’s accounting practices. In 2023, the U.S. Securities and Exchange Commission (SEC) opened an investigation into the Company’s sale of Bitcoin and other cryptocurrencies. The SEC is reportedly looking into whether Block, Inc. properly disclosed the risks and potential revenue recognition issues related to its cryptocurrency business.
Furthermore, the lawsuit could potentially lead to increased scrutiny of other tech companies that have entered the cryptocurrency market in recent years. For example, Tesla, Inc. and MicroStrategy, Inc. have also faced criticism for their significant investments in Bitcoin and the potential impact on their financial statements.
Conclusion
The filing of this class action lawsuit against Block, Inc. is a reminder of the importance of transparency and accuracy in financial reporting, particularly in the tech industry. The allegations of securities fraud could have significant implications for individual investors and the broader stock market. As the SEC continues to investigate the Company’s accounting practices related to its cryptocurrency business, it will be important for investors to stay informed and seek professional advice if they believe they may be impacted.
- Block, Inc. (NYSE: SQ) is being sued for securities fraud.
- The lawsuit alleges that the Company made false and misleading statements during the Class Period.
- The misrepresentations led to artificially inflated stock prices.
- Individual investors who purchased Block, Inc.’s securities during the Class Period may be entitled to recover their losses.
- The lawsuit highlights the importance of transparency and accuracy in financial reporting, particularly in the tech industry.
- The SEC is reportedly investigating the Company’s accounting practices related to its cryptocurrency business.
- The allegations of securities fraud could potentially impact investor confidence in the stock market and lead to increased scrutiny of other tech companies.
