Block Receives $150M Settlement in Oversight Case
News related to:Block, Inc · 3 min read
NEW YORK, Nov. 11, 2026 /CourierPR/ -- The Hach Rose Schirripa & Rehns LLP law firm has reached a proposed $150 million settlement on behalf of Block, Inc., in a landmark oversight litigation. This settlement marks one of the largest cash recoveries ever obtained in a Caremark oversight case, delivering an exceptional result for Block and its stockholders.
Block, Inc., launched its Cash App service in 2013 as a money-transfer platform, designed with "frictionless onboarding" features that allowed users to open accounts with minimal identifying information. According to a March 2023 report, the Cash App was attractive to fraudsters, money launderers, sex traffickers, and other criminals, who exploited the service's lax security measures.
The oversight case alleged that Block's Board of Directors failed to establish or maintain adequate systems for monitoring these risks and responding appropriately to warning signs concerning the platform's misuse. The alleged misconduct led to 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 the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. - 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 the Department of Justice was announced in November 2026.
Block continues to face a related securities-fraud class action in connection with the alleged misconduct. The case, In Re Block Inc. Shareholder Derivative Litigation, No. 5:25-cv-1262-NW, was consolidated and is being led by Hach Rose Schirripa & Rehns LLP and Block & Leviton LLP.
The proposed resolution requires defendants' insurers to pay $150 million in cash directly to the Company, subject to court approval. This settlement is among the largest monetary settlements ever obtained in a stockholder derivative action based on oversight claims under In re Caremark International Inc. Derivative Litigation.
Shareholder James Kelly and Hach Rose Schirripa & Rehns LLP began investigating the alleged misconduct in March 2023 and undertook an extensive two-year pre-suit investigation culminating 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, Hach Rose Schirripa & Rehns LLP and Block & Leviton LLP were appointed co-lead counsel of the consolidated derivative action. 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 (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.
The settlement is subject to preliminary and final approval by the 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 Counsel's and the Company's Websites.
The case is captioned In Re Block Inc. Shareholder Derivative Litigation, No. 5:25-cv-01262, (N.D. Cal.).