The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Block, Inc. (NYSE: SQ) who purchased shares between November 4, 2021 and April 4, 2022. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the Block lawsuit alleges that (1) defendants did not satisfy the mandatory conditions necessary to exempt them from registration under §3(a)(10) and permit the issuance and sale of unregistered Block Shares; (2) in violation of §§5(a) and (c) of the Securities Act, no registration statement has been filed with the U.S. Securities and Exchange Commission or been in effect with respect to these Block Shares issued, solicited, and sold by means of Block’s January 31, 2022 acquisition and stock-for-stock merger with Afterpay (the “Merger” or “Acquisition”); (3) in order to push the Acquisition through, defendants failed to comply with §3(a)(10)’s mandatory preconditions in several respects; and (4) defendants’ grossly negligent failures deprived the Supreme Court of New South Wales (“NSW Court”) of critical information necessary for any genuine appraisal of the Merger’s supposed “fairness,” and furthermore deprived plaintiff and other Afterpay shareholders of their statutory right to appear and present to the NSW Court the host of serious concerns and material (yet undisclosed) information ahead of the Merger.
Shareholders have until April 3, 2023 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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