Block, Inc. Faces Class Action Lawsuits

Block, Inc. is facing multiple class action lawsuits filed by Rosen Law Firm and Levi & Korsinsky, LLP. The lawsuits allege that Block, Inc. engaged in widespread and years-long compliance lapses at its Block, Inc. and Cash App platforms. These lapses purportedly allowed the platforms to be used for various illegal activities, including money laundering, child sexual abuse, sex trafficking, drug trafficking, terrorism financing, and illicit payments to sanctioned entities. The lawsuits claim that Block, Inc. failed to conduct basic due diligence on customer identities and transactions, encouraged the use of Bitcoin, and pressured banking partners to forgo standard know-your-customer procedures. Furthermore, it is alleged that Block, Inc.'s senior leadership and Board of Directors failed to address identified compliance deficiencies despite numerous red flags and internal reports. The lawsuits also claim that Cash App user metrics were artificially inflated by fake accounts. Investors who purchased Block, Inc. Class A common stock between February 26, 2020, and April 30, 2024, are being encouraged to join the class action, with a lead plaintiff deadline of March 18, 2025.