COLUMBUS, Ohio – Ohio Attorney General Dave Yost is seeking to take the lead in a securities class-action lawsuit against financial technology company Block Inc., accusing the firm of misleading investors and causing major financial losses, including $12.6 million for Ohio’s largest public pension fund.
Yost has filed a motion requesting that the Ohio Public Employees Retirement System (OPERS) be appointed as the lead plaintiff in the lawsuit, which alleges that Block concealed widespread compliance failures that allowed illegal activities to thrive on its Cash App and Square platforms.
“The Front Door Was Left Wide Open”
According to Yost, Block falsely assured investors that its financial platforms were secure against criminal activity. In reality, he claims, the company’s lax oversight enabled illegal transactions tied to drug trafficking, money laundering, terrorism financing, child exploitation, and even contract killings.
“Block claimed its products were fortified against crime, but in reality, the front door was left wide open to drug traffickers, money launderers, and worse,” Yost said. “The false narrative cost investors billions of dollars, and the company needs to make it right.”
Share Prices Plunge Amid Compliance Scandals
Block’s alleged failures began coming to light in early 2023, triggering a sharp decline in its stock value. The company’s shares dropped nearly 15% in March 2023 after a critical report exposed serious compliance gaps. Later that year, Block confirmed that the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) had opened investigations into the allegations, sending its shares tumbling another 14% in August. Further revelations in May 2024 led to an additional 8% decline.
In total, the company’s stock value plummeted 77% from its peak over the four years covered by the lawsuit.
Regulators Crack Down
In January 2025, state and federal regulators ordered Block to pay $255 million in penalties, including up to $120 million in refunds to affected consumers. The lawsuit, filed in the U.S. District Court for the Northern District of California, seeks additional damages from Block and its executives, including co-founder Jack Dorsey and former CFO Amrita Ahuja.
With billions in investor losses at stake, Yost’s push to lead the case underscores Ohio’s aggressive stance on corporate accountability and financial transparency.
