Hindenburg Research said on Thursday it held short positions in Block Inc , alleging that the Jack Dorsey-led payments firm overstated its user counts and understated its customer acquisition costs.
, alleging that the Jack Dorsey-led payments firm overstated its user counts and understated its customer acquisition costs.
"Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," the short seller said in a note published on its website.Block did not immediately respond to a Reuters request for comment. The U.S. short-seller, behind a market rout of over $100 billion in India's Adani Group, said in its latest report that former Block employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.About 5.2% of Block's free float shares were in short position as of March 22, according to Ortex data.
Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm that analyses equity, credit and derivatives. It has a track-record of finding corporate wrongdoings and placing bets against the companies. Reporting by Manya Saini and Akriti Sharma in Bengaluru; Editing by Nivedita Bhattacharjee and Sriraj Kalluvila
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Texas lawmaker again tries to block discriminatory hairstyle bans in schools and workplacesTexas lawmakers could prohibit race-based hair discrimination at schools and workplaces. At least 20 states have already passed similar legislation, according to a group that champions the laws.
Read more »
Building block of life found in sample from asteroid RyuguThe discovery of the nucleobase uracil is a big step forward for astrobiology.
Read more »
A crucial building block of life exists on the asteroid RyuguA sample from Ryugu collected by Japan’s Hayabusa2 spacecraft contains uracil, a component of RNA, which is found in all living cells.
Read more »
Texas Senate committee advances bill that would block minors' access to gender-affirming careThe Texas Pediatric Society, the Texas Psychological Association and other medical organizations testified against the bill last week. Texas txlege DanPatrick TransRights TransWomenAreWomen LGBTQIA
Read more »
Charli XCX About to 'Mother' Jack Antonoff on Soundtrack for New Anne Hathaway, Micaela Coel FilmCharli XCX and Jack Antonoff teaming up to make music for a film about a pop star played by Anne Hathaway and a fashion legend played by Michaela Coel? Sign. Us. Up.
Read more »
Full list of Republicans backing Matt Gaetz's bid to block FBI's new HQGaetz, a Florida Republican, accused the FBI of 'targeting Americans who oppose their corrupt political agenda.'
Read more »