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Block Inc

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business6 hours ago•5 min saved

Cash App blamed for enabling widespread fraud as Block reaches $45M multi-state settlement

New York Attorney General Letitia James and 45 other states say Cash App’s lax onboarding—no robust identity checks, no limits on accounts, and no customer phone support—lets scammers open fake accounts and target unbanked users. Block agreed to about $45 million in settlements with the states (including NY’s $1.6 million share) and to honor a separate Consumer Financial Protection Bureau action that could total $75–$120 million for harmed consumers plus a $55 million CFPB penalty, while denying wrongdoing.

via Gothamist|

#block-inc #business #cash-app

business2 days ago•14 min saved

Utah Lands Nearly $0.5 Million in Cash App Settlement

Utah will receive about $482,183 as part of a $45 million multistate settlement with Block, Inc., the company behind Cash App, over claims it misled users about fraud protections and allowed fraudulent account takeovers. The settlement requires stronger fraud protections, 24/7 live support, an end to certain marketing tactics that increased fraud, consumer education, and reimbursement of unauthorized transactions.

via KSL.com|

#block-inc #business #cash-app

business4 months ago•3 min saved

Block's AI-Driven Layoffs Face Skepticism Over Real Causes

Block CEO Jack Dorsey cited rapid AI improvements as the rationale for cutting almost half the workforce, but insiders and analysts say the moves resemble standard cost-cutting and reflect prior layoffs, leaving questions about whether AI was the true driver or simply a cover for organizational restructuring.

via Futurism|

#ai #analysis #block-inc

business4 months ago•4 min saved

Block halves its staff as AI tools reshape operations

Block Inc. will cut about 4,000 jobs—nearly half its workforce—while leaning into AI tools, a move CEO Jack Dorsey says reflects how intelligence tools transform building and running a company. The announcement sent Block shares up over 25% after hours; the company reported about $6.3 billion in Q4 revenue and a $234 million hit from bitcoin investments, illustrating the broader AI-driven shift and the crypto-risk backdrop.

via Financial Times|

#ai-and-jobs #block-inc #business

finance1 year ago•2 min saved

Last Chance to Claim Up to $2,500 in Cash App Settlement

Cash App users have until November 18, 2024, to claim part of a $15 million settlement from a class action lawsuit against Block Inc. and Cash App Investing. The lawsuit accused the companies of negligence after unauthorized access to user accounts in 2022 and 2023. Eligible users can receive up to $2,500 for out-of-pocket losses and $75 for lost time, provided they submit necessary documentation. A final approval hearing for the settlement is scheduled for January 13, 2025.

via KTLA Los Angeles|

#block-inc #cash-app #class-action

businesstechnology2 years ago•1 min saved

"Block Inc. Initiates Layoffs to Reach 12,000 Employee Cap"

Block Inc., led by Jack Dorsey, has initiated layoffs as part of its plan to reduce staff by up to 10% by the end of 2024, citing the company's rapid growth outpacing its business and revenue growth. The company, formerly known as Square, aims to reach its headcount target gradually through performance adjustments and reorganizing measures, as it focuses on blockchain technology and bitcoin-related ventures.

via CoinDesk|

#block-inc #blockchain #businesstechnology

business2 years ago•2 min saved

Block's Profits Soar, Stock Surges on Strong Earnings and Growth Potential

Block Inc. reported better-than-expected adjusted profit for the third quarter, with earnings of 55 cents per share, beating analysts' expectations of 47 cents per share. The company's revenue also exceeded estimates, reaching $5.6 billion compared to the expected $5.4 billion. Block's gross profit increased to $1.90 billion, in line with consensus. The stock rose 7% in after-hours trading. The company aims to achieve meaningful margin expansion and a target of $2.4 billion in adjusted EBITDA by 2024. Block plans to improve operating-expense discipline, cap employee size at 12,000 by 2024, and assess its real-estate footprint to enhance its cost structure.

via MarketWatch|

#block-inc #business #earnings

business2 years ago•2 min saved

"Block's Stock Slides as Square CEO Alyssa Henry Steps Down, Jack Dorsey Takes Over"

Block Inc.'s stock has been underperforming this year, and now the head of its Square merchant business, Alyssa Henry, is stepping down. The announcement comes as Block shares have declined 18% while other payment-technology stocks have performed better. Jack Dorsey will assume Henry's role while continuing to lead Block. The performance of the Square merchant business has been a concern for investors, with slower growth compared to competitors. Some investors see the management shakeup as positive, while others worry about the loss of Henry's expertise. Block acknowledged Henry's significant contributions during her nine-year tenure. UBS recently downgraded Block shares due to concerns about the Square business and a potential slowdown in gross-profit growth.

via MarketWatch|

#alyssa-henry #block-inc #business

business2 years ago•1 min saved

Block's Q2 performance surpasses expectations, prompting a bullish 2023 earnings forecast under Dorsey's leadership

Block Inc, led by Jack Dorsey, reported a rise in second-quarter revenue, beating estimates. The fintech company's net revenue reached $5.53 billion, compared to $4.4 billion last year, with gross profit rising 27% to $1.87 billion. Block also revised its 2023 earnings outlook to $1.5 billion. Cash App, the company's online payments service, saw a 37% increase in gross profit to $968 million, while Square business reported a gross profit of $888 million. Block remains focused on expanding internationally while controlling costs.

via Reuters|

#block-inc #business #cash-app

business2 years ago•2 min saved

Block's Earnings Soar Despite Stock Decline

Block Inc. raised its profit forecast for the year and reported positive adjusted operating income for the full year, but its stock fell in after-hours trading due to a July slowdown in a key metric. The company's net income for the June quarter was $123 million, compared to a loss of $208 million in the same period last year. Block also exceeded expectations on gross profit, but indicated a deceleration in July. The company highlighted the strength of its Cash App business, which had 54 million monthly transacting actives in June.

via MarketWatch|

#block-inc #business #cash-app

business3 years ago•3 min saved

Twitter Faces $550 Million in Lawsuits Over Copyright Infringement and Jack Dorsey's Extravagant Bar Tab.

A lawsuit brought by Block shareholders against Jack Dorsey alleged that his acquisition of Tidal, Jay-Z's music streaming service, was nothing more than a "$300 million bar tab to hang out with Jay-Z." The claim was that the idea for Block's acquisition of Tidal came while Dorsey was "summering" with Jay-Z in the Hamptons. The recent legal battle ended in defeat for shareholders, with the Delaware judge overseeing the case ruling against them, leaving Block and Dorsey in the clear, despite the deal being branded as "a $300 million bar tab to hang out with Jay-Z."

via Yahoo Finance|

#block-inc #business #jack-dorsey

cryptocurrency3 years ago•2 min saved

ARK Invest and Coinbase face SEC uncertainty as crypto investments continue.

ARK Invest CEO Cathie Wood has purchased $19.9 million worth of Block Inc. shares across its ETFs, just days after buying $21 million in Coinbase stock. This comes despite the SEC suing Coinbase and Binance for offering unregistered securities. ARK Invest's new shares of Block Inc. represent its fourth largest holding at 4.81%. Wood believes that the SEC's regulation by enforcement approach has taken a toll on cryptocurrency innovators in the US, and is bullish on Bitcoin over the long term.

via Cointelegraph|

#ark-invest #block-inc #cathie-wood

business3 years ago•2 min saved

Lawsuit over Block's purchase of Tidal dismissed by judge.

A shareholder class action lawsuit against Jack Dorsey and other board members at Block Inc over the company's purchase of Jay-Z's streaming service Tidal has been dismissed by a Delaware judge. The judge said the Florida pension fund leading the case did not show that Block's directors acted in bad faith, although the purchase was a "terrible business decision." Block agreed in March 2021 to pay $306m for an 87.5% stake in Tidal, which was losing money, had lost major contracts, faced a Norwegian criminal probe into its streaming numbers, and had accepted a $50m loan from Jay-Z to shore up its finances.

via Yahoo Finance|

#block-inc #business #jack-dorsey

business3 years ago•2 min saved

Lawsuit over Block's purchase of Tidal dismissed by judge.

via Yahoo Finance|

#block-inc #business #jack-dorsey

finance3 years ago•2 min saved

Hindenburg Report Sparks Controversy and Losses for Jack Dorsey and Cash App

Cathie Wood, founder of Ark Invest, criticized Hindenburg's short report on Block Inc. as "wildly misleading" and accused the short seller of underestimating the intelligence of investors and analysts. Ark Invest has been buying up Block shares since the release of the report, holding the stock in three of its ETFs. The short report claimed that Cash App was the only electronic P2P payment processor mentioned in a COVID-19 fraud indictment, but failed to mention that the defrauded funds had come via Bank of America.

via Benzinga|

#block-inc #cathie-wood #finance