Block shares plunge 15% after short seller Hindenburg says Jack Dorsey’s company facilitates fraud
Publishing timestamp: 2023-03-23 18:10:37
Summary
Short seller Hindenburg Research announced that it has taken a short position on Block, alleging that the payment company's flagship Cash App facilitates criminal activity and lacks strong compliance controls. Hindenburg also claimed that Block inflates Cash App's transacting user base and that its compliance programs are deficient. Block's shares plunged nearly 15% after the announcement. Block responded by stating that it intends to work with the SEC and explore legal action against Hindenburg for its "factually inaccurate and misleading report."
Sentiment: NEGATIVE
Keywords: investment strategy, breaking news: technology, donald trump, paypal holdings inc, internet, jack dorsey, business news, enterprise, block inc,
Source: https://www.cnbc.com/2023/03/23/block-shares-plunge-after-hindenburg-says-jack-dorseys.html