Lawsuit Update Notice: Investors who lost money with Block, Inc. (NYSE: SQ) shares should contact the Shareholders Foundation

Rhea-AI Summary

Block, Inc. (NYSE: SQ) is facing a lawsuit from certain investors alleging violations of securities laws due to inadequate protocols restricting access to customer information. The lawsuit claims that a former employee was able to download sensitive reports, potentially leading to reputational harm and significant damage.

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• None.

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• The lawsuit could lead to reputational damage and financial implications for Block, Inc. and its shareholders.

Legal Expert

The pending lawsuit against Block, Inc. represents a significant legal challenge for the company, with potential implications for its financial stability and investor relations. The allegations of inadequate data protection protocols suggest a lapse in corporate governance and risk management, which are critical components of a company's operational integrity. Should the plaintiffs succeed, the company could face substantial financial penalties and the incident might trigger regulatory scrutiny that could lead to stricter compliance requirements. Moreover, the reputational harm mentioned could erode customer trust and investor confidence, potentially impacting market sentiment and the company's stock price.

Financial Analyst

From a financial perspective, this lawsuit raises concerns about potential liabilities that Block, Inc. may have to recognize on its balance sheet. The cost of litigation, along with any possible settlement or judgment amount, could be material. Investors should assess the adequacy of the company's legal reserves and the impact of these events on its earnings per share. Additionally, the market typically reacts negatively to such uncertainty, which could lead to increased stock price volatility. The allegations could also prompt a reevaluation of the company's risk profile, affecting its cost of capital and potentially influencing future investment decisions.

Market Research Analyst

Examining the broader market implications, the lawsuit against Block, Inc. highlights the growing importance of data security in the financial technology sector. As companies like Block, Inc. handle sensitive customer information, their ability to safeguard this data becomes a critical factor in maintaining competitive advantage. This incident may serve as a cautionary tale for other fintech companies, emphasizing the need to invest in robust cybersecurity measures. Such investments not only mitigate legal risks but can also enhance customer loyalty and attract investors who are increasingly mindful of privacy and data protection issues when evaluating company prospects.

SAN DIEGO, March 4, 2024 /PRNewswire/ -- The Shareholders Foundation, Inc. announced that a lawsuit is pending for certain investors in Block, Inc. (NYSE: SQ) shares.

Investors, who purchased shares of Block, Inc. (NYSE: SQ) prior to April 2022 and continue to hold any of those shares, have also certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On October 11, 2022, an investor in Block, Inc. (NYSE: SQ shares filed a lawsuit against Block, Inc. alleging violations of securities laws. The plaintiff alleges that the defendants failed to disclose to investors that the Company lacked adequate protocols restricting access to customer sensitive information, that, as a result, a former employee was able to download certain reports of the Company'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, that, as a result, the Company was reasonably likely to suffer significant damage, including reputational harm, and that, as a result of the foregoing, Defendant's positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 7, 2023 the Court issued an order consolidating several filed cases and on on February 15, 2024, the Court issued an order further consolidating cases.

Those who purchased NYSE: SQ shares prior to April 2022 and continue to hold any of those shares, have also certain options and should contact the Shareholders Foundation, Inc.

CONTACT:
Shareholders Foundation, Inc. 
Michael Daniels 
+1 (858) 779-1554 
mail@shareholdersfoundation.com 
3111 Camino Del Rio North 
Suite 423 
San Diego, CA 92108

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.

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SOURCE Shareholders Foundation, Inc.

What lawsuit is pending for certain investors in Block, Inc. (NYSE: SQ) shares?

A lawsuit is pending for certain investors in Block, Inc. (NYSE: SQ) shares alleging violations of securities laws.

What were the allegations made in the lawsuit against Block, Inc. (NYSE: SQ)?

The lawsuit alleges that the Company lacked protocols restricting access to customer information, leading to a former employee downloading sensitive reports.

What options do investors who purchased shares of Block, Inc. (NYSE: SQ) prior to April 2022 have?

Investors who purchased shares before April 2022 and continue to hold them have certain options and can contact the Shareholders Foundation for more information.

How can investors contact the Shareholders Foundation regarding the lawsuit against Block, Inc. (NYSE: SQ)?

Investors can contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554 for assistance.

What sensitive information was allegedly accessed by a former employee at Block, Inc. (NYSE: SQ)?

The former employee was able to download reports containing full customer names, brokerage account numbers, portfolio value, holdings, and stock trading activity.

What potential harm was the Company likely to suffer as a result of the accessed information?

The Company was reasonably likely to suffer significant damage, including reputational harm, due to the accessed sensitive information.