Block Inc. finds itself navigating turbulent waters as it prepares to report quarterly earnings next month. The financial technology firm is simultaneously launching an ambitious cryptocurrency integration for merchants while confronting a serious class-action lawsuit that directly implicates top executives.
Shareholder Lawsuit Targets Leadership
On October 9, investors filed a class-action complaint in a California federal court containing substantial allegations against Block’s leadership. The legal action claims CEO Jack Dorsey and CFO Amrita Ahuja, among other executives, breached their fiduciary duties by disregarding compliance failures within the Cash App platform.
According to the plaintiffs, company leadership allegedly permitted the platform to be exploited for fraudulent activities and money laundering operations. More significantly, the lawsuit suggests these compliance issues may have artificially inflated user metrics. These allegations aren’t emerging in isolation—a May 2024 NBC report had previously indicated federal investigations into similar concerns.
Previous Settlement Sets Precedent
This isn’t Block’s first encounter with regulatory challenges. The company previously paid approximately $255 million in 2025 to resolve comparable allegations with the Consumer Financial Protection Bureau and several U.S. states. The timing of this new lawsuit creates additional complications as Block prepares to announce quarterly results on November 6, marking the first opportunity for management to address both developments simultaneously.
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Bitcoin Integration Moves Forward
Despite legal headwinds, Block continues to advance its cryptocurrency strategy. During its “Square Releases” event held from October 8-10, the company unveiled its new “Square Bitcoin” system, representing one of the most significant merchant-focused crypto integrations in recent years.
The platform enables merchants to accept Bitcoin payments while automatically converting up to 50% of their daily card sales into the cryptocurrency. A key advantage is the seamless integration within Block’s existing Square dashboard, eliminating the need for complicated third-party providers.
The “Bitcoin Conversions” feature is already operational for U.S. merchants, though availability excludes New York. Participants in the beta testing phase have already accumulated 142 Bitcoin. The “Bitcoin Payments” functionality launches on November 10 with an introductory no-fee period extending through the end of 2026, after which a 1% processing fee will take effect in January 2027.
Critical Juncture for Management
The coming weeks represent a pivotal moment for Block’s leadership team. Investors will be watching closely to see how the company balances its innovative cryptocurrency initiatives against persistent legal challenges. The November earnings announcement will provide the first comprehensive look at how management plans to navigate these competing priorities while maintaining investor confidence during a period of both technological advancement and legal scrutiny.
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