Hach Rose Schirripa & Rehns LLP Secures $150 Million Settlement for Block, Inc. In in Landmark Oversight Litigation

The Proposed Settlement would deliver one of the largest cash recoveries ever obtained in a Caremark oversight case.

NEW YORK, Nov. 11, 2026 /PRNewswire/ -- Hach Rose Schirripa & Rehns LLP ("HRSR") announced today that it has reached a proposed $150 million settlement on behalf of Block, Inc. in stockholder derivative litigation alleging failures by the Company's Board of Directors to oversee compliance with the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and respond to warning signs that Block's "Cash App" service was being exploited for fraud, money laundering, drug activity, sex trafficking, and other criminal conduct. 

Subject to court approval, the settlement will require defendants' insurers to pay $150 million in cash directly to the Company. The proposed resolution is among the largest monetary settlements ever obtained in stockholder derivative action based on oversight claims under In re Caremark International Inc. Derivative Litigation.

"This settlement delivers an exceptional result for Block and its stockholders," said Daniel Rehns, Co-Lead Counsel and Partner at Hach Rose Schirripa & Rehns LLP. "It returns $150 million directly to Block. The result is particularly significant given the difficulty of proving an oversight claim under Delaware law."

Block launched Cash App in 2013 as a money-transfer service. According to the complaint, the service was built around "frictionless onboarding," allowing users to open accounts with minimal identifying information. The complaint alleged that this feature made the Cash App attractive to fraudsters, money launderers, sex traffickers, and other bad actors. It further alleged that Block's officers and directors failed to establish or maintain adequate systems for monitoring these risks and failed to respond appropriately to warning signs concerning the platform's misuse.

A March 2023 report alleged that Block overstated the number of genuine Cash App users, permitted fraud and criminal activity to proliferate on the platform, and maintained a "Wild West" approach to compliance.

The alleged misconduct was followed by a series of regulatory actions and substantial financial consequences for Block, including:

• In January 2025, Block agreed to pay an $80 million fine and undertake corrective action to resolve a coordinated enforcement action by 48 state financial regulators concerning alleged violations of BSA/AML.
• The following day, the Consumer Financial Protection Bureau ordered Block to provide up to $120 million in refunds and other consumer redress and to pay a $55 million civil penalty.
• In April 2025, the New York Department of Financial Services imposed a $40 million penalty after finding, among other things, that Block had failed to maintain an effective and compliant AML program.
• In July 2026, the attorneys general of 46 states announced a $45 million settlement with Block, while the Washington Attorney General separately announced a $20 million settlement.
• A tentative $764 million settlement with Department of Justice announced in November 2026.

Block also continues to face a related securities-fraud class action in connection with the alleged misconduct. 

"Delaware law sets an extraordinarily demanding standard for director-oversight claims," said Frank Schirripa, HRSR Founding Partner. "Against that legal backdrop, a $150 million payment to the company represents a remarkable recovery."

Shareholder James Kelly and HRSR began investigating the alleged misconduct in March 2023 and undertook an extensive two-year pre-suit investigation which culminated in a 117-page derivative complaint filed on April 24, 2025. The complaint asserted that certain Block fiduciaries breached their duties by failing to oversee the company's compliance operations and by failing to respond to warning signs concerning criminal abuse of the Company's Cash App platform.

In June 2025, HRSR and Block & Leviton LLP were appointed co-lead counsel of the consolidated derivative action, In re Block Inc. Shareholder Derivative Litigation, No. 5:25-cv-1262-NW. Defendants moved to dismiss the action on multiple grounds and the Court denied those motions on January 6, 2026. Defendants subsequently sought permission to pursue an interlocutory appeal, but Plaintiff successfully opposed that effort.

In April 2026, Block's board formed a Special Litigation Committee, or SLC, with authority to control the company's response to the litigation. The SLC later requested a 180-day stay to conduct its investigation. Co-lead counsel successfully opposed the stay request by the SLC, and discovery ensued while the SLC conducted its work.

"This stellar outcome was only possible due to the diligent and exhaustive efforts by incredible attorneys and staff on the litigation teams at HRSR and Block & Leviton," said Mr. Rehns. "The case was being litigated at exceptional speed. The evidentiary record developed through that work created the foundation for this result."

The settlement is subject to preliminary and final approval by court. Additional information concerning the settlement, the approval process, and stockholders' rights will be provided after the settlement papers are filed and will be accessible on Lead Counsels' and the Company's Websites.

The case is captioned In Re Block Inc. Shareholder Derivative Litigation, No. 5:25-cv-01262, (N.D. Cal.)

About Hach Rose Schirripa & Rehns LLP

Hach Rose Schirripa & Rehns LLP specializes in large, complex litigation in the fields of securities, corporate governance, antitrust, consumer protection, and employment litigation. With over 150 years of combined experience, the Firm's attorneys have established themselves as leading representatives of institutional investors and individuals in these areas of the law.

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