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id: 202, Created by Stan Vick, Scout
Block Inc (SQ) Data Breach Case
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S.D. New YorkCourt
- Block announced a data breach on 04/04/2023
- $SQ fell by 6.4% and lost $4.9B of its MCap
- Investors suspect that Block & its Leaders failed timely disclose a data breach that affected their investment decisions.
According to the SEC filing on April 4, 2022, Block, Inc. announced a data breach and among other things:
- " it recently determined that a former employee downloaded certain reports of its subsidiary Cash App Investing LLC on December 10, 2021, that contained some U.S. customer information. While this employee had regular access to these reports as part of their past job responsibilities, in this instance these reports were accessed without permission after their employment ended.
- The information in the reports included full name and brokerage account number (this is the unique identification number associated with a customer’s stock activity on Cash App Investing), and for some customers also included brokerage portfolio value, brokerage portfolio holdings and/or stock trading activity for one trading day.
- Upon discovery, the Company and its outside counsel launched an investigation with the help of a leading forensics firm. Cash App Investing is contacting approximately 8.2 million current and former customers to provide them with information about this incident and sharing resources with them to answer their questions. The Company is also notifying the applicable regulatory authorities and has notified law enforcement."
On this news, SQ’s stock fell by 6.4% the next trading day and lost about $4.9 billion of its capitalization, seriously damaging investors.
On December 14, Afterpay shareholders approved the Scheme, without knowing of the Data Breach.
- On January 31, 2022, Block's subsidiary completed its acquisition of all Afterpay Shares and Afterpay became an indirect wholly owned subsidiary of Block.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
04 April 2022
03 April 2023
Lead Plaintiff Deadline
03 June 2023