Block Faces Class Action Lawsuit over Data Breach

guest · Sep 3, 2022

Firm Did Not Have Necessary Measures to Protect PII, Plaintiffs Allege
By Prajeet Nair @prajeetspeaks - August 25, 2022

Fintech company Block faces a putative class action demanding improvements to corporate security and damages for customers affected by a 2021 data breach that affected 8.2 million individuals.

The company, formerly known as Square and co-founded by former-Twitter CEO Jack Dorsey, disclosed the breach in an April securities filing. A former employee of Block subsidiary Cash App Investing downloaded customer information including full names and brokerage account number, and in some cases brokerage portfolio value and other holdings data.
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The putative class action lawsuit, filed in the Northern District of California, alleges Block failed to "exercise reasonable care in securing and safeguarding consumer information." Block owed a duty to its customers to protect their data but instead forced plaintiffs into spending time and resources into mitigating the breach, it charges.

Consumers "have a property interest" in their private information, an interest that Block violated through negligent data security, it further alleges (see: Cash App Warns 8.2 Million Customers of Insider Breach).
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The two named plaintiffs allege they found multiple unauthorized transactions made to their Cash App accounts following the data breach, money for which they haven't been reimbursed.

"Notice of the Data Breach was not just untimely but woefully deficient. Even worse, Defendants failed to offer any credit or identity theft monitoring services," the complaint says.
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Block Faces Class Action Lawsuit over Data Breach

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