Jack Dorsey, Block Inc. Sued Over Stock Drop After Data Theft

Financial services provider Block Inc. waited several months to disclose that an ex-employee took customers’ names and brokerage information, leading to a 6.4% stock price decline when the story emerged, a shareholder says in a proposed class action.

CEO Jack Dorsey and chief financial officer Amrita Ahuja participated in issuing misleading press releases and Securities and Exchange Commission filings, stock owner Donna Esposito says. Her complaint was filed Tuesday in the US District Court for the Southern District of New York.

Block, formerly Square Inc., offers retail tools through its Square segment and financial services for individuals through its Cash ...