Block inches closer to DOJ settlement
Block set aside $240 million to negotiate a potential settlement with the DOJ over allegations from a 2023 short seller report.Summary
Block has set aside $240 million as it negotiates a potential legal settlement with the Department of Justice. The DOJ presented Block with "potential terms for resolving this matter" in March, but the company disputes the basis and methodology of the assessment. Block made a counterproposal in April, and discussions are ongoing. The SEC has ended its investigation into Block and does not intend to recommend an enforcement action. The DOJ and SEC sought information following a March 2023 report by Hindenburg Research, which alleged that Cash App was a platform for criminal activity with lax fraud controls. Block disputed the report, calling it "factually inaccurate and misleading." The company previously agreed to pay $255 million in a settlement with state and federal regulators over weak security protocols in the app.
(Source：Paymentsdive)