Block said it would explore legal action against Hindenburg Research after the short-seller accused the payments company of facilitating fraud through its Cash App platform.
Block shares fell 15% on Thursday after Hindenburg released its report. The company's stock fell another 2% on Friday, closing at $60.68.
Hindenburg claims multiple key lapses in Cash App’s compliance processes facilitated billions in government payment fraud.
- In a statement, Block referred to the Hindenburg report as factually inaccurate and misleading.
- Block said it plans to work with the SEC and explore legal action against Hindenburg Research.
- Block noted it is a highly regulated public company with regular disclosures and is confident in its products, reporting, compliance programs, and controls.
- Block said it had reviewed Hindenburg’s report in the context of its own data and believes the short-seller’s report is designed to deceive and confuse investors.
- Block added it would not be distracted by typical short-seller tactics.
