NEW YORK, March 09, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that it is investigating the officers and directors of Block Inc. (“Block” or the “Company”) (NYSE: SQ) for potential breaches of fiduciary duties, waste of corporate assets, and unjust enrichment between November 4, 2021 and April 4, 2022.
A securities class action complaint is pending in the United States District Court for the Southern District of New York (the “Securities Class Action”). The complaint in the Securities Class Action alleges that Defendants failed to disclose that: (i) Block lacked adequate protocols restricting access to customer sensitive information; (ii) as a result, a former employee was able to download certain reports of Block’s subsidiary, Cash App Investing, containing full customer names and brokerage account numbers, as well as brokerage portfolio value, brokerage portfolio holdings, and/or stock trading activity; and (iii) consequently, Block was reasonably likely to suffer significant damage, including reputational harm.
On April 4, 2022, Block announced that a former employee had improperly downloaded certain reports of Block’s subsidiary, Cash App Investing, on December 10, 2021. The information in the reports included full customer names and brokerage account numbers, as well as brokerage portfolio value, brokerage portfolio holdings, and/or stock trading activity. As many as 8.2 million Cash App Investing customers were affected. Prior to April 4, 2022, Block had not disclosed this information to shareholders. On this news, Block’s stock price fell by more than 6%, damaging investors.
If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
