NEW YORK (Reuters) – Block, the technology and financial services company led by Twitter co-founder Jack Dorsey, won the dismissal on Tuesday of litigation claiming it misled shareholders in connection with a large data breach at its Cash App mobile payment service.
U.S. District Judge Margaret Garnett in Manhattan found no proof Block intended to defraud shareholders in connection with the December 10, 2021 breach, where a former employee downloaded personal information of about 8.2 million Cash App users.
Shareholders in the proposed class action said Block inflated its share price by failing to disclose its inadequate data security prior to the breach, and then waiting nearly four months before disclosing the breach on April 4, 2022.
They also accused the Oakland, California-based company of misleading former shareholders of Afterpay about its data security, in order to…
