Jack Dorsey, Jay-Z Sued Over Block Inc. Data Breach, Acquisition

An investor sued the Block Inc. board Wednesday, claiming the payments company failed to prevent a data breach and then hid it from the judge scrutinizing its merger with an Australian company.

The lawsuit’s targets include Twitter co-founder Jack Dorsey, prominent economist Larry Summers, and music mogul Jay-Z, who joined the board when Block acquired his music streaming platform, Tidal, in a deal that’s facing a court challenge from a pension fund. Dorsey co-founded Block, the former Square Inc.

The suit also names Block’s chief financial officer as a defendant, claiming she made more than $1.1 million in insider ...