Block Inc. Board Sued by Shareholders Over Cash App Data Breach

Block Inc.'s board was sued on Friday over a data breach at its popular money-transfer service Cash App that potentially exposed the personal financial information of over 8 million users.

“Block has sustained substantial damages and irreparable injury to its reputation,” said shareholder Michael Rubin in the stockholder derivative suit.

The lawsuit, filed in a Manhattan federal court against board members including CEO Jack Dorsey, claims breaches of fiduciary duties, violations of securities laws, and other misconduct.

The lawsuit says the board failed to implement appropriate internal controls over customers’ personal information despite red flags dating back to 2020 that ...