Block, the parent company of Cash App, is negotiating with the U.S. Department of Justice regarding alleged compliance shortcomings. The company set aside $240 million in the first quarter for a potential legal settlement.
The DOJ presented resolution terms in March. Block submitted a counterproposal in April, and discussions continue.
The probe stems from allegations in a 2023 short seller's report. Block disputes the DOJ’s assessment methodology despite making the financial provision.
The Securities and Exchange Commission concluded its own investigation in March. The SEC does not recommend enforcement action.