BLOCK(SQ) Prnewswire·2025-01-30 10:45Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Block, Inc. regarding a class action lawsuit alleging that the company engaged in widespread compliance lapses and failed to disclose material information that led to illegal activities on its platforms [1]. Allegations Summary - Block allegedly issued materially false and misleading statements and failed to disclose compliance issues related to customer identity verification and transaction nature [1]. - The company is accused of creating an environment that facilitated illegal activities, including money laundering, child sexual abuse, and drug trafficking, by imposing minimal obligations on customers [1]. - Thousands of transactions on Block's platforms were reportedly linked to various illegal activities, and the company allowed customers to withdraw funds even after accounts were flagged for suspicious activities [1]. - Customers could open multiple accounts using fake identities, contributing to illegal activities, while senior leadership failed to address known compliance deficiencies [1]. - Block's user metrics for Cash App were allegedly inflated through the use of fake accounts, exposing the company to reputational harm and regulatory risks [1]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action by March 18, 2025, to participate in potential recovery [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [2]. Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that inflate stock prices [3].