Esposito v. Block, Inc. et al
Case Summary
On October 11, 2022, Donna Esposito (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Gregory B. Link, Robert V. Prongay, and Pavithra Rajesh of Glancy Prongay & Murray LLP and Howard G. Smith of the Law Offices of Howard G. Smith, filed a class-action lawsuit against Block Inc., Jack Dorsey, and Amrita Ahuja (collectively, “Defendants”), seeking damages for alleged violation of the Securities Exchange Act (“Exchange Act”) by Defendants. This case was filed in the U.S. District Court for the Southern District of New York, with Judge Ronnie Abrams presiding.
Plaintiff brings this action as a class action pursuant to Federal Rule of Civil Procedure 23(a) and (b)(3) on behalf of a class, consisting of all persons and entities that purchased or otherwise acquired Block securities between November 4, 2021 and April 4, 2022, inclusive, and who were damaged thereby (the “Class”).
In the complaint, Plaintiff claimed, “Block, formerly known as Square Inc., is a technology company that creates financial service tools. Its segments include Square, which offers financial tools for sellers, and Cash App, which provides financial tools for individuals. On April 4, 2022, Block announced that a former employee had improperly downloaded certain reports of the Company’s subsidiary, Cash App Investing, on December 10, 2021.”
Plaintiff alleged, “The information in the reports included full customer names and brokerage account numbers, as well as brokerage portfolio value, brokerage portfolio holdings and/or stock trading activity. As many as 8.2 million Cash App Investing customers were affected. Prior to April 4, 2022, the company had not disclosed this information to shareholders.”
Plaintiff also alleged, “On this news, the Company’s stock fell $9.27, or 6.4%, to close at $135.92 per share on April 5, 2022, thereby injuring investors. Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that the Company lacked adequate protocols restricting access to customer sensitive information, that, as a result, a former employee was able to download certain reports of the Company’s subsidiary, Cash App Investing, containing full customer names and brokerage account numbers, as well as brokerage portfolio value, brokerage portfolio holdings and/or stock trading activity.”
Plaintiff then alleged that “the Company was reasonably likely to suffer significant damage, including reputational harm and that, as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.”
Additionally, Plaintiff alleged, “Under these circumstances, all purchasers of Block’s securities during the Class Period suffered similar injury through their purchase of Block’s securities at artificially inflated prices and a presumption of reliance applies. All that is necessary is that the facts withheld be material in the sense that a reasonable investor might have considered them important in making investment decisions.”
Plaintiff presented two claims for relief, including claims for the alleged violation of Sections 10(b), 20(a), and Rule 10b-5 of the Exchange Act.
In the prayer for relief, Plaintiff requested an award of compensatory damages for all wrongdoing by Defendants, together with costs for litigation.
This is a summary of a legal complaint. All statements, claims, and allegations listed herein reflect the position of the plaintiff only and do not represent the position of UniCourt. Additionally, this case summary may not reflect the current position of the parties to this litigation or the current status of this case. To view the latest case updates and court documents, please sign up for a UniCourt account.
Case Details
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Case Number:
1:22-CV-08636
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Filing Date:
10/11/2022
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Case Status:
Pending - Other Pending
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Case Type:
Finance - Security/Commodity/Exchange
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Court:
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Courthouse:
Judge Details
Presiding Judge
Ronnie Abrams
Party Details
Plaintiff
Donna Esposito
Defendants
Block, Inc.
Jack Dorsey
Amrita Ahuja
Attorney/Law Firm Details
Plaintiff Attorney
Gregory Bradley Linkh
Attorney at Glancy Prongay & Murray LLP
230 Park Avenue, Suite 358
New York, NY 10169
Defendant Attorneys
James N. Kramer
Attorney at Orrick, Herrington & Sutcliffe LLP (San Francisco)
The Orrick Building, 405 Howard Street
San Francisco, CA 94105
Jennifer Michelle Keighley
Attorney at Planned Parenthood Federation of America (NYC2)
123 William St., 9Th Fl.
New York, NY 10038
Richard Andre Jacobsen, Jr.
Attorney at Orrick, Herrington & Sutcliffe LLP
666 Fifth Avenue
New York, NY 10103
Alexander Talarides
Attorney at Orrick, Herrington & Sutcliffe LLP (San Francisco)
The Orrick Building, 405 Howard Street
San Francisco, CA 94105
Court Documents
(#17) ORDER: A conference in this action shall be held on January 6, 2023 at 1:00 p.m. in Courtroom 1506 of the U.S. District Court for the Southern District of New York, 40 Foley Square, New York, New York. At this conference, the Court shall address all pending motions for consolidation, to appoint lead plaintiff(s), and to appoint lead plaintiff(s)' counsel. SO ORDERED., ( Status Conference set for 1/6/2023 at 01:00 PM in Courtroom 1506, 40 Centre Street, New York, NY 10007 before Judge Ronnie Abrams.) (Signed by Judge Ronnie Abrams on 11/15/2022) (ama) (Entered: 11/15/2022)
Exhibit A - PSLRA Notice
Main Document
(#15) STIPULATION AND ORDER CONTINUING DATE UPON WHICH RESPONSIVE PLEADING IS DUE AND INITIAL CASE MANAGEMENT DEADLINES:, Motions terminated: #13 LETTER MOTION to Continue Date Upon Which Responsive Pleading is Due and Initial Case Management Deadlines addressed to Judge Ronnie Abrams from Jennifer M. Keighley dated November 8, 2022. filed by Amrita Ahuja, Block, Inc., Jack Dorsey. NOW, THEREFORE, the parties, by and through their undersigned counsel of record, in the interests of judicial economy, hereby agree and stipulate, and respectfully request that the Court order as follows: 1. Defendants are not required to respond to the initial complaint in this Action, or to any complaint in any action consolidated into this Action, until after the Court appoints a lead plaintiff pursuant to the Reform Act; 2. The December 2, 2022 deadline for submission of a joint status letter and proposed case management plan and scheduling order, along with the December 9, 2022 status conference, are both vacated; 3. Within fourteen (14) days after the Court appoints a lead plaintiff(s) pursuant to the Reform Act, Defendants and the lead plaintiff(s) shall confer and jointly submit to the Court: (i) a proposed schedule and dates by which the lead plaintiff(s) will file an amended complaint or designate a complaint as the operative complaint; and (ii) a briefing schedule on Defendants' anticipated motion(s) to dismiss. Based on the stipulation of the signed parties, and good cause appearing, IT IS HEREBY ORDERED that the Stipulation is approved. In addition, Plaintiff shall file a copy of the required notice, as published on October 11, 2022, on ECF promptly. Once Plaintiff has provided the Court with a copy of its notice, the Court shall set a conference to consider any motions for appointment of lead plaintiff and lead counsel and for consolidation. That conference shall be held within 90 days of the notice's publication. Upon scheduling the conference, the Court will also set a deadline for the service and filing of the oppositions to any motion for appointment of lead plaintiff. SO ORDERED. (Signed by Judge Ronnie Abrams on 11/10/2022) (ks) (Entered: 11/10/2022)
Appendix - Stipulation and [Proposed] Order
Main Document
(#12) WAIVER OF SERVICE RETURNED EXECUTED. Amrita Ahuja waiver sent on 11/7/2022, answer due 1/6/2023; Block, Inc. waiver sent on 11/7/2022, answer due 1/6/2023; Jack Dorsey waiver sent on 11/7/2022, answer due 1/6/2023. Document filed by Donna Esposito..(Linkh, Gregory) (Entered: 11/07/2022)
Text of Proposed Order Granting Pro Hac Vice Motion
Exhibit 1 - Alexander K. Talarides Certificate of Good Standing
Affidavit of Alexander K. Talarides in support of Pro Hac Vice Motion
Main Document
(#6) ORDER AND NOTICE OF INITIAL CONFERENCE: IT IS FURTHER ORDERED that counsel for all parties appear for an initial status conference on December 9, 2022 at 1:30 p.m. If Defendant has not yet been properly served, has not filed a responsive pleading, and/or the parties otherwise seek to adjourn the conference, they shall notify the Court by no later than December 2, 2022. Unless the parties request otherwise, the Court will hold this conference by telephone. The parties shall use the following dial-in information to call in to the conference: Call-in Number: (888) 363-4749; Access Code: 1015508. Initial Conference set for 12/9/2022 at 01:30 PM before Judge Ronnie Abrams. (Signed by Judge Ronnie Abrams on 10/21/2022) (ate) (Entered: 10/21/2022)
Exhibit A - Complaint and PSLRA Certification
Main Document
(#4) ELECTRONIC SUMMONS ISSUED as to Amrita Ahuja, Block, Inc., Jack Dorsey..(pc) (Entered: 10/12/2022)
(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Block, Inc., Jack Dorsey and Amrita Ahuja, re: #1 Complaint. Document filed by Donna Esposito..(Linkh, Gregory) (Entered: 10/11/2022)
(#2) CIVIL COVER SHEET filed..(Linkh, Gregory) (Entered: 10/11/2022)
(#5) NOTICE of Errata re: #1 Complaint. Document filed by Donna Esposito. (Attachments: #1 Exhibit A - Complaint and PSLRA Certification).(Linkh, Gregory) (Entered: 10/18/2022)
Docket Entries
- 11/15/2022
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Docket(#17) ORDER: A conference in this action shall be held on January 6, 2023 at 1:00 p.m. in Courtroom 1506 of the U.S. District Court for the Southern District of New York, 40 Foley Square, New York, New York. At this conference, the Court shall address all pending motions for consolidation, to appoint lead plaintiff(s), and to appoint lead plaintiff(s)' counsel. SO ORDERED., ( Status Conference set for 1/6/2023 at 01:00 PM in Courtroom 1506, 40 Centre Street, New York, NY 10007 before Judge Ronnie Abrams.) (Signed by Judge Ronnie Abrams on 11/15/2022) (ama) (Entered: 11/15/2022)
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- 11/10/2022
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Docket(#16) NOTICE of of Publication of PSLRA Notice. Document filed by Donna Esposito. (Attachments: #1 Exhibit A - PSLRA Notice).(Linkh, Gregory) (Entered: 11/10/2022)
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- 11/10/2022
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Docket(#15) STIPULATION AND ORDER CONTINUING DATE UPON WHICH RESPONSIVE PLEADING IS DUE AND INITIAL CASE MANAGEMENT DEADLINES:, Motions terminated: #13 LETTER MOTION to Continue Date Upon Which Responsive Pleading is Due and Initial Case Management Deadlines addressed to Judge Ronnie Abrams from Jennifer M. Keighley dated November 8, 2022. filed by Amrita Ahuja, Block, Inc., Jack Dorsey. NOW, THEREFORE, the parties, by and through their undersigned counsel of record, in the interests of judicial economy, hereby agree and stipulate, and respectfully request that the Court order as follows: 1. Defendants are not required to respond to the initial complaint in this Action, or to any complaint in any action consolidated into this Action, until after the Court appoints a lead plaintiff pursuant to the Reform Act; 2. The December 2, 2022 deadline for submission of a joint status letter and proposed case management plan and scheduling order, along with the December 9, 2022 status conference, are both vacated; 3. Within fourteen (14) days after the Court appoints a lead plaintiff(s) pursuant to the Reform Act, Defendants and the lead plaintiff(s) shall confer and jointly submit to the Court: (i) a proposed schedule and dates by which the lead plaintiff(s) will file an amended complaint or designate a complaint as the operative complaint; and (ii) a briefing schedule on Defendants' anticipated motion(s) to dismiss. Based on the stipulation of the signed parties, and good cause appearing, IT IS HEREBY ORDERED that the Stipulation is approved. In addition, Plaintiff shall file a copy of the required notice, as published on October 11, 2022, on ECF promptly. Once Plaintiff has provided the Court with a copy of its notice, the Court shall set a conference to consider any motions for appointment of lead plaintiff and lead counsel and for consolidation. That conference shall be held within 90 days of the notice's publication. Upon scheduling the conference, the Court will also set a deadline for the service and filing of the oppositions to any motion for appointment of lead plaintiff. SO ORDERED. (Signed by Judge Ronnie Abrams on 11/10/2022) (ks) (Entered: 11/10/2022)
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- 11/10/2022
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Docket(#14) ORDER granting #11 Motion for Alexander K. Talarides to Appear Pro Hac Vice (HEREBY ORDERED by Judge Ronnie Abrams)(Text Only Order) (arc) (Entered: 11/10/2022)
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- 11/09/2022
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Docket>>>NOTICE REGARDING PRO HAC VICE MOTION. Regarding Document No. #11 MOTION for Alexander K. Talarides to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-26930988. Motion and supporting papers to be reviewed by Clerk's Office staff.. The document has been reviewed and there are no deficiencies. (sgz) (Entered: 11/09/2022)
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- 11/08/2022
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Docket(#13) LETTER MOTION to Continue Date Upon Which Responsive Pleading is Due and Initial Case Management Deadlines addressed to Judge Ronnie Abrams from Jennifer M. Keighley dated November 8, 2022. Document filed by Amrita Ahuja, Block, Inc., Jack Dorsey. (Attachments: #1 Appendix - Stipulation and [Proposed] Order).(Keighley, Jennifer) (Entered: 11/08/2022)
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- 11/07/2022
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Docket(#12) WAIVER OF SERVICE RETURNED EXECUTED. Amrita Ahuja waiver sent on 11/7/2022, answer due 1/6/2023; Block, Inc. waiver sent on 11/7/2022, answer due 1/6/2023; Jack Dorsey waiver sent on 11/7/2022, answer due 1/6/2023. Document filed by Donna Esposito..(Linkh, Gregory) (Entered: 11/07/2022)
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- 11/07/2022
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Docket(#11) MOTION for Alexander K. Talarides to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-26930988. Motion and supporting papers to be reviewed by Clerk's Office staff. Document filed by Amrita Ahuja, Block, Inc., Jack Dorsey. (Attachments: #1 Affidavit of Alexander K. Talarides in support of Pro Hac Vice Motion, #2 Exhibit 1 - Alexander K. Talarides Certificate of Good Standing, #3 Text of Proposed Order Granting Pro Hac Vice Motion).(Talarides, Alexander) (Entered: 11/07/2022)
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- 11/04/2022
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Docket(#10) ORDER granting #9 Motion for James N. Kramer to Appear Pro Hac Vice (HEREBY ORDERED by Judge Ronnie Abrams)(Text Only Order) (arc) (Entered: 11/04/2022)
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- 11/03/2022
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Docket>>>NOTICE REGARDING PRO HAC VICE MOTION. Regarding Document No. #9 MOTION for James N. Kramer to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-26911425. Motion and supporting papers to be reviewed by Clerk's Office staff. The document has been reviewed and there are no deficiencies. (sac) (Entered: 11/03/2022)
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- 10/21/2022
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Docket(#6) ORDER AND NOTICE OF INITIAL CONFERENCE: IT IS FURTHER ORDERED that counsel for all parties appear for an initial status conference on December 9, 2022 at 1:30 p.m. If Defendant has not yet been properly served, has not filed a responsive pleading, and/or the parties otherwise seek to adjourn the conference, they shall notify the Court by no later than December 2, 2022. Unless the parties request otherwise, the Court will hold this conference by telephone. The parties shall use the following dial-in information to call in to the conference: Call-in Number: (888) 363-4749; Access Code: 1015508. Initial Conference set for 12/9/2022 at 01:30 PM before Judge Ronnie Abrams. (Signed by Judge Ronnie Abrams on 10/21/2022) (ate) (Entered: 10/21/2022)
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- 10/18/2022
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Docket(#5) NOTICE of Errata re: #1 Complaint. Document filed by Donna Esposito. (Attachments: #1 Exhibit A - Complaint and PSLRA Certification).(Linkh, Gregory) (Entered: 10/18/2022)
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- 10/12/2022
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Docket(#4) ELECTRONIC SUMMONS ISSUED as to Amrita Ahuja, Block, Inc., Jack Dorsey..(pc) (Entered: 10/12/2022)
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- 10/12/2022
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Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Gregory Bradley Linkh. The party information for the following party/parties has been modified: Donna Esposito. The information for the party/parties has been modified for the following reason/reasons: party text was omitted;. (pc) (Entered: 10/12/2022)
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- 10/12/2022
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DocketCase Designated ECF. (pc) (Entered: 10/12/2022)
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- 10/12/2022
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DocketMagistrate Judge Ona T. Wang is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (pc) (Entered: 10/12/2022)
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- 10/12/2022
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DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Ronnie Abrams. Please download and review the Individual Practices of the assigned District Judge, located at #https://nysd.uscourts.gov/judges/district-judges. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #https://nysd.uscourts.gov/rules/ecf-related-instructions..(pc) (Entered: 10/12/2022)
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- 10/11/2022
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Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Block, Inc., Jack Dorsey and Amrita Ahuja, re: #1 Complaint. Document filed by Donna Esposito..(Linkh, Gregory) (Entered: 10/11/2022)
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- 10/11/2022
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Docket(#2) CIVIL COVER SHEET filed..(Linkh, Gregory) (Entered: 10/11/2022)
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- 10/11/2022
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Docket(#1) COMPLAINT against Amrita Ahuja, Block, Inc., Jack Dorsey. (Filing Fee $ 402.00, Receipt Number ANYSDC-26799954)Document filed by Donna Esposito..(Linkh, Gregory) (Entered: 10/11/2022)
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