INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Block Inc. (NYSE: SQ) Shareholders
NEWTOWN, PA, October 25, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Block Inc. (“Block” or the “Company”) (NYSE: SQ) common stock between November 4, 2021, and April 4, 2022, inclusive (the “Class Period”).
Investors who purchased Block common stock during the Class Period may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than December 12, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the Block, Inc. Securities Class Action
Block, formerly known as Square Inc., is a multinational technology conglomerate founded in 2009, which builds tools to increase access to the economy. The Company consists of Square, CashApp, Spiralbtc, TIDAL, tbd, and the foundational teams that support those companies.
The Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements (and material omissions), about the Company’s business, operation, and prospects. Specifically, Defendants failed to disclose that:(i) Block lacked sufficient protocols restricting access to customer sensitive information; (ii) this allowed a former employee to download certain reports of the Company’s subsidiary, Cash App Investing, containing full customer names and brokerage account numbers, brokerage portfolio values, brokerage portfolio holdings, and trading activity; and (iii) as a result of this data breach, the Company was likely to suffer significant damage, including reputational harm, and making Defendant’s positive statements about the Company’s business, operations, and prospects materially misleading.
On April 4, 2022, Block belatedly revealed the data breach by its former employee, on December 10, 2021. As many as 8.2 million Cash App Investing customers were affected. On this news, the price of Block shares plummeted $9.27, or 6.4%, to close at $135.92 per share on April 5, 2022.
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About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.