SAN FRANCISCO, July 25, 2022 /PRNewswire/ — Hagens Berman urges Block, Inc. (NYSE: SQ) investors who suffered significant losses to submit your losses now. The firm is investigating possible securities law violations.
Contact An Attorney Now:
Block, Inc. (NYSE: SQ) Investigation:
The investigation focuses on Block’s statements about its subsidiary’s (Cash App Investing) customer privacy policies and controls.
More specifically, Block has in the past assured Cash App Investing customers that “[t]o protect your personal information from unauthorized access and use, we use security measures that comply with federal law,” “[t]hese measures include computer safeguards and secured files and buildings,” and “[t]he Company takes the security of information belonging to its customers very seriously.”
The accuracy of these statements came into question on Apr. 4, 2022, when Block announced that a former employee, after termination, improperly downloaded certain reports of Cash App Investing on Dec. 10, 2021. The information in the reports included full customer names and brokerage account numbers. For some customers, the stolen reports also included brokerage portfolio value, brokerage portfolio holdings and/or stock trading activity for one trading day. As many as 8.2 million current and former Cash App Investing customers may have been affected by the privacy breach.
This news sent the price of Block shares sharply lower on Apr. 5, 2022.
The New York Times later reported on the incident, quoting a security expert at KnowBe4, a cybersecurity training company: “Taking customers’ data and security seriously would require securing external access to employees’ accounts and disabling that access upon termination, preferably before the employee leaves.”
“We’re focused on investors’ losses and whether Block misled investors about its operational risks,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Block and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Block should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP