![]() ![]() The delays resulted in CleanSpark adopting “an alternative, less profitable means to expand its mining capacity, by contracting with a third-party to house and power CleanSpark’s mining equipment so it would not stand idle while the expansion project was ongoing.”Īllegedly, and when on Aug. Then, an expansion project undertaken by CleanSpark that promised to increase mining capacity was pushed back multiple times, contrary to the defendants’ alleged promises. The stock price reportedly fell 9.2% the first day the news broke to close at $35.71 per share and several more percentage points during the next trading session to close at $31.15 per share on Jan. The plaintiffs argue that the company and its leaders made statements contrary to this report, concealing the truth from investors. The plaintiffs explain that CleanSpark’s motivation for the purchase was to decrease energy costs, maximize the profitability of Bitcoin mining, and expand its operations.Īfter the acquisition, a short-seller called Culper Research published a report that made a number of “damning revelations” about CleanSpark’s acquisition of ATL, including that ATL’s bitcoin mining business was merely a rebranded version of a business run by a company that entered bankruptcy in early 2020. According to Thursday’s motion to dismiss, the plaintiffs fall short of pleading multiple elements of their fraud claims, including not identifying a single misrepresentation or omission.Īccording to the shareholders’ amended complaint, which also names the CleanSpark’s CEO and executive chairman as defendants, the company made multiple missteps in relation to the December 2020 acquisition. has urged a Southern District of New York judge to dismiss a securities class action filed against it over its acquisition of Data Centers LLC (ATL) and ATL’s primary asset, a data center and bitcoin mining facility in College Park, Georgia. ![]() The firm's lawyers have recovered billions of dollars for its clients.CleanSpark Inc. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The deadline to move the Court to be appointed lead plaintiff is March 22, 2021.īlock & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. If you purchased or acquired shares of CleanSpark between Decemand January 14, 2021, you are strongly encouraged to contact the nationally-recognized securities law firm Block & Leviton LLP ( at (617) 398-5600, via email at or at. The suit alleges that CleanSpark misled investors as to the Company's customer and contract figures and that several of CleanSpark's recent acquisitions involved undisclosed related party transactions. District Court for the Southern District of New York. On January 14, 2021, analyst Culper Research published a report entitled "CleanSpark (CLSK): Back to the Trash Can." In this report, Culper alleged that CleanSpark "is an insider enrichment scheme which, at every turn of its promotion, has vastly overstated or simply fabricated key elements of its business, including purported customers and contracts." Culper continued that "CleanSpark's entire ‘business' has been built upon lies and deceit." The market was stunned by this report, and shares fell by approximately 9.2% to close at $35.71 on January 14, 2021.Ī lawsuit has been filed against CleanSpark and certain of its executives in the U.S. ![]() (NASDAQ:CLSK) and certain of its executives. BOSTON, MA / ACCESSWIRE / Janu/ Block & Leviton LLP ( a national securities litigation firm, announces that a lawsuit for violation of the federal securities laws has been filed against CleanSpark, Inc.
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