Federal prosecutors are investigating Block, the company founded by Jack Dorsey. A former employee claims Block has had major, long-standing issues with compliance, including failing to properly screen customers, process sanctioned transactions, and report suspicious activity as required by law.
These lapses have been identified by an outside consultant and were allegedly known to the company's leadership and board of directors. Block maintains it is committed to improving compliance but has disputed the severity of the allegations.
Extended trading witnessed significant volatility for various companies. Intuit and Booking Holdings surpassed earnings forecasts, but their shares declined. Live Nation, despite exceeding revenue estimates, gained modestly. Insulet's earnings projection fell short, leading to a share drop. Block performed well, beating revenue expectations and driving its shares up. Carvana's projections fueled a share surge, while MercadoLibre's earnings report caused a significant decline in its shares due to flat earnings and low operating income.
