Block Board Faces Derivative Suit Over Afterpay Deal, Data Breach

Feb. 22, 2023, 5:07 PM UTC

The board of Block Inc., a financial technology company co-founded by Jack Dorsey, is facing a shareholder lawsuit alleging an unregistered shares sale and failure to take cautionary measures for a data breach.

The derivative lawsuit, filed Tuesday in the US District Court for the Northern District of California, claimed that Block sold unregistered shares as part of a $29 billion all-stock deal to buy Afterpay Ltd., a buy-now-pay-later tech developer. The shares didn’t qualify for an exemption from the Securities and Exchange Commission’s registration requirements, the suit said.

Block’s money-transfer service Cash App suffered a data breach in ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.