Kaskela Law LLC is investigating Block, Inc. (NYSE: XYZ, formerly NYSE: SQ) on behalf of the company’s long-term shareholders.

Recently a securities fraud complaint was filed against Block on behalf of certain investors who purchased shares of the company’s stock between February 26, 2020 and April 30, 2024 (the “Relevant Period”).  According to the complaint, during the Relevant Period, Block and certain of the company’s senior executive officers made a series of materially false and/or misleading statements in claiming that Block maintained effective compliance protocols and procedures to prevent use of the company’s platforms for illicit activities.

The complaint further details how, despite prior representations and through a series of partial disclosures beginning in March 2023, investors learned that “in actuality, Block failed to implement even basic due diligence and know your customer (‘KYC’) protocols, effectively creating a haven for criminal and illicit activities on its platforms.”  Following each of these partial disclosures, shares of Block’s common stock declined in value.  Eventually, in January 2025, (i) a coalition of 48 state regulatory agencies announced that Block had agreed to pay $80 million for violations of the Bank Secrecy Act and anti-money laundering laws, and (ii) the Consumer Financial Protection Bureau (“CFPB”) ordered Block to refund and pay other redress to consumers up to $120 million and a penalty of $55 million into the CFPB’s victims relief fund.

The investigation seeks to determine whether the members of Block’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Block shareholders who purchased or acquired SQ / XYZ shares prior to January 1, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
([email protected])
Adrienne Bell, Esq.
([email protected])
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750