BLOCK(SQ) GlobeNewswire News Room·2025-01-29 17:41Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Block, Inc. regarding a class action lawsuit due to allegations of compliance failures and misleading statements during the specified class period [1][3]. Allegations Summary - The complaint alleges that Block engaged in significant compliance lapses at Square and Cash App, failing to conduct due diligence on customer identities and transactions, which allowed illegal activities to proliferate [3]. - Block is accused of creating an environment conducive to illegal activities by imposing minimal obligations on customers and encouraging the use of bitcoin, while pressuring banking partners to bypass standard due diligence [3]. - Numerous transactions linked to illegal activities such as money laundering, child sexual abuse, and drug trafficking were reportedly facilitated through Block's platforms [3]. - The company allegedly allowed customers to withdraw funds from flagged accounts and permitted the opening of multiple accounts using fake identities, further enabling illicit activities [3]. - Senior leadership and the Board are claimed to have ignored compliance deficiencies despite numerous warnings and complaints, leading to inflated user metrics through fake accounts [3]. - As a result of these actions, Block faced undisclosed risks that could lead to reputational damage, regulatory actions, and negative impacts on operations and financial results [3]. Next Steps for Shareholders - Shareholders who purchased shares during the class period are encouraged to register for the class action by March 18, 2025, to potentially become lead plaintiffs [4]. - Registration will provide shareholders with updates throughout the case lifecycle, with no cost or obligation to participate [4]. Law Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and illegal business practices [5].