Block shares plunge 19% after short seller Hindenburg says Jack Dorsey’s company facilitates fraud

After Adani, Hindenburg Targets Jack Dorsey's Payments Firm Block Over Inflated User Base

Following publication of the report, Block's stock tumbled up to 22 percent in early trading on Wall Street before recovering slightly

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

Hindenburg Research said in its latest report that former Block employees estimated that 40%-75% of accounts they reviewed were fake.

Block | Jack Dorsey: Hindenburg shorts Jack Dorsey's payments firm Block

"Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," the short seller said in a note published on its website.

Hindenburg shorts Jack Dorsey’s payments firm Block

Shares of Block fell 13% in premarket trading after the report.

Block falls 19% after short seller Hindenburg targets company

The hedge fund claims false accounts at the fintech

Hindenburg takes aim at Dorsey's payments firm Block, shares plunge

Hindenburg Research on Thursday disclosed short positions in Block Inc and alleged that the payments firm led by Twitter co-founder Jack Dorsey overstated its user numbers and understated its customer acquisition costs.