Block inc shares under pressure from Hindenburg report

Investors' attention during today's session was undoubtedly captured by the dynamic sell-off in the shares of Block Inc (SQ.US), the company founded by Jack Dorsey. At the start of today's session, the company's shares were losing more than 20 per cent following a report by the well-known media organization Hindenburg Research, which claimed that the company was a fraud. Among other things, the report contained information attesting that between 40% and 75% of the accounts handled by Block Inc are fraudulent. 

It did not take long for Block's management to respond, and in an official response shared on the company's Twitter platform, the company said that the report produced by Hindenburg Research was inaccurate and misleading. Furthermore, the company added that it intends to explore the possibility of taking legal action against Hindenburg Research in response to the "inaccurate short sale report".

The official report produced by Hindenburg Research can be found here. The company's shares are currently losing nearly 15%. At the start of the session it was up over 20%. Block Inc (SQ.US) shares are trying to make up for some of the initial losses. Source: xStation 5