Block Shareholders Advance Cash App Crime ‘Red Flags’ Suits (2)

Block Inc. and certain leaders must defend investor allegations they misrepresented its due diligence and financial reporting while ignoring “red flags” about criminals’ use of its payment platform.

The shareholders adequately alleged Block and current and former board members and executives misrepresented Cash App’s compliance programs while concealing associated risks, Judge Noël Wise said while denying the tech company and leadership’s requests to dismiss proposed class and derivative lawsuits Tuesday.

The New York City retirement pension funds leading the proposed class action sufficiently pleaded that assurances about Block’s compliance programming were misleading when it wasn’t capable of meeting regulatory requirements, ...