Block Inc. Securities Fraud Litigation
Gonsalves v. Block, Inc., et al., No. 5:25-cv-00642-NW (N.D. Cal.). Lieff Cabraser serves as Court-appointed Co-Lead Counsel for Lead Plaintiff the New York City Pension Funds in securities fraud class action litigation alleging Block and certain of its senior executives, including Chief Executive Officer Jack Dorsey, knowingly misrepresented the Company’s compliance and anti-money laundering programs on its payment platform Cash App, as well as the number of Cash App users.
As revealed through a series of partial disclosures including multiple whistleblower allegations, Block intentionally ignored its compliance obligations in order to expand its user base and increase revenues by facilitating payments linked to illegal and fraudulent activity. Block’s compliance failures triggered extensive regulatory scrutiny, including 2025 consent orders with the Consumer Financial Protection Bureau and 49 state financial regulators, resulting in hundreds of millions in settlements.
On January 6, 2026, U.S. District Court Judge Noël Wise denied in full the defendants’ motion to dismiss the case. Read a copy of Judge Wise’s Order. The case will now move forward to discovery.
