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SQ.US
id: 202

Block Inc (SQ) Data Breach Case

S.D. New York
Court
1:23-CV-02789
Case number
07 Dec 2021
Class period Start
04 Apr 2022
Class period End
03 Jun 2023
Lead Plaintiff motion deadline
  • 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.
Alleged Offence
Mismanagement
Misleading Statements
Failure to Disclose
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Security Type
Stocks
Trade Direction
Long
Shock Event Date
04 April 2022
Filing date
03 April 2023
Lead Plaintiff Deadline
03 June 2023
Collecting participants…

Block Inc

Block, Inc. operates as a technology company with a focus on financial services. It builds tools to help people in accessing the economy. Its products include Square that makes commerce and financi...

    Ticker
    SQ.US
    ISIN
    US8522341036
    CIK
    1512673
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    1955 Broadway, Oakland, CA, United States, 94612