Hindenburg accuses Jack Dorsey's Block of $1 bn fraud, misleading investors; stock nosedives

Hindenburg published its report after a two-year investigation, the firm, run by Nathan Anderson, said in a report on published on its website and distributed via Twitter. (Jack Dorsey, Block Chairman in pic)

Shares of Block Inc. slumped after Hindenburg Research said it’s betting on a decline in the stock, saying the payments company led by Jack Dorsey has misled investors.

Block declined 20% to $58.35 at 8:53 a.m. in New York in US premarket trading. Block didn’t immediately reply to an email request for comment from Bloomberg News before regular business hours.

Hindenburg published its report after a two-year investigation, the firm, run by Nathan Anderson, said in a report on published on its website and distributed via Twitter. Dorsey, Block’s chairman, was a co-founder of Twitter.

The firm in January triggered a selloff in shares of billionaire Gautam Adani’s companies with allegations of accounting fraud and stock manipulation. Hindenburg’s report on electric-vehicle maker Nikola Corp. in September 2020 sent the stock plunging and led to criminal charges against the company’s founder, Trevor Milton. He was convicted in October of defrauding investors.