Block stock falls, plans to take legal action against Hindenburg Research

Yahoo Finance Live’s Brad Smith discusses the decline in stock for Block.

Video transcript

BRAD SMITH: Let's also talk a little Block, though, here on the day. There's a lot to talk about there. Block shares are extending their losses this morning. This is a day after the company became the latest target of short seller Hindenburg Research. The report alleges that Block has been misleading investors by overstating user numbers with fake accounts and that it's ignoring fraudulent payments. Now, Block condemned the report, saying that it is planning to work with the SEC to take legal action against Hindenburg.

Block CEO Jack Dorsey saw his net worth fall by over $500 million since that report dropped. On the dip of the Block stock, ARK Invest's Cathie Wood bought up about $21 million worth of shares of the company.

We've got you covered on all things Block much more later on in the show.