Short-selling agency Hindenburg Research (Hindenburg Research) released a report on Thursday (23rd), targeting Block, an American online payment company owned by Twitter founder Jack Dorsey. The report alleged that Block overreported user numbers and questioned its predatory lending tactics.
As soon as the news came out, Block’s stock price plummeted nearly 15% on Thursday, closing at $61.88.
According to Hindenburg’s report, former Block employees estimate that between 40 and 75 percent of the accounts they review involve false reports, accounts associated with fraud, or individuals with multiple accounts.
Facing Hindenburg’s accusation, Block immediately counterattacked, saying that it has been discussing legal action against the short-selling agency, emphasizing that the content of the report is false and the purpose is to deceive and confuse investors.
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