Block, Inc. Q Class action lawsuit alleging securities fraud:

The litigation focuses on Block’s statements about the privacy policies and controls for customers of its subsidiary (Cash App Investing).

The complaint alleges that the defendants failed to disclose to investors that: (1) Block lacked adequate protocols restricting access to sensitive customer information; (2) as a result, a former employee was able to download certain reports from Cash App Investing that contained full client names and broker account numbers, as well as broker portfolio values, holdings, and/or trading activity; and (3) as a result, it was reasonably likely that the Company would suffer significant damage, including damage to its reputation.

According to the complaint, investors learned the truth on April 4, 2022, when Block disclosed that on December 10, 2021, a former employee had downloaded certain Cash App Investing reports that tracked up to 8.2 million current and former Cash App Investing customers concerned . The information in the reports included full client names and broker account numbers. For some clients, the stolen reports also included broker portfolio value, broker portfolio holdings, and/or stock trading activity.

This news caused the price of Block shares to fall sharply on April 5, 2022, wiping out over $4 billion in shareholder value.

The New York Times later quoted a security expert from KnowBe4, a cybersecurity training company: “To take customer data and security seriously, external access to employees’ accounts would need to be secured and that access disabled after termination, preferably before the employee leaves.” “

“We are focused on investor losses and evidence that Block misled investors about its operational risks,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.

If you have invested in Block and are suffering significant losses or have knowledge that…