Block shares slump 20% after Hindenburg shorts Jack Dorsey’s payments firm

By Jessica On Mar 23, 2023

Bloomberg | | Posted by Ritu Maria Johny

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 is led by Jack Dorsey, former CEO of Twitter. (File)

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.

Also read: Hindenburg’s next target is Block, ex-Twitter CEO Jack Dorsey-led payments firm

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.

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