Block Defeats Investor Lawsuit Over Cash App Data Breach (1)

Block Inc. beat proposed class allegations it misled shareholders about its data security surrounding a 2021 breach of its mobile payment product Cash App.

Investors in the fintech giant and another payment company Block acquired failed to allege material misstatements about security controls or the incident, Judge Margaret M. Garnett said while tossing the lawsuit with finality Tuesday. The US District Court for the Southern District of New York judge said that a subset of the stockholders also failed to allege a mental state to deceive or recklessness by leadership, including co-founders Jack Dorsey and Jim McKelvey, about Block’s ...