NEW YORK, March 10, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Block, Inc. f/k/a Square Inc. (“Block” or the “Company”) (NYSE: SQ). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Block and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On January 31, 2022, Block completed its acquisition of Afterpay (the Merger”), then an Australian limited company listed on the Australian Stock Exchange, pursuant to a scheme of arrangement under Australia’s Corporations Act of 2001 (the “Scheme”). Pursuant to the Scheme, Block acquired all outstanding ordinary shares of Afterpay in exchange for 0.375 of a share of newly issued SQ Class A common stock or corresponding SQ CHESS Depository Interest. In connection with the Merger, Block represented to Afterpay’s shareholders that “[t]he Square securities issued in the [Merger] are anticipated to be issued in reliance upon an available exemption from [registration] pursuant to Section 3(a)(10) of the Securities Act.” In reliance upon these and other representations regarding the Merger, Afterpay’s directors recommended to Afterpay shareholders that they vote in favor of the Merger, and a substantial majority of Afterpay’s shareholders did so. As a result, on or around January 31, 2022, in connection with the Merger, Block offered and sold approximately 113 million Block shares directly to former Afterpay shareholders. However, contrary to Block’s representations, however, the Company had not satisfied the mandatory conditions necessary to exempt these shares from registration under Section 3(a)(10), which would have permitted the issuance and sale of unregistered Block shares.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980