Block Inc. was named in a verified stockholder derivative complaint filed Wednesday in Delaware Court of Chancery against the company's cofounder Jack Dorsey and other members of its board. The case, filed by Rigrodsky Law and Rosca Scarlato LLC, accuses the defendants of failing to ensure that Block had satisfied mandatory conditions of the Securities Act to exempt the company from having to register its stock to complete a merger with AfterPay Ltd. The suit also alleges breach of fiduciary duties in connection with a Dec. 2021 data breach orchestrated by a former employee who downloaded Cash App reports from eight million customers. Counsel have not yet appeared for the defendants. The case is 2023-0290, Kevin LaLone v. Jack Dorsey, et al.
Banking & Financial Services
March 08, 2023, 2:17 PM