Cleanspark culper research12/8/2023 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. Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions.CleanSpark Inc. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. If you would like to discuss the complaint or our investigation, please contact us by emailing or by calling (646) 315-9003 ![]() You need not seek to become a lead plaintiff in order to share in any possible recovery. ![]() If you are a member of the proposed Class, you may move the court no later than Mato serve as a lead plaintiff for the purported class. is “another undisclosed related party transaction, as CleanSpark’s CFO Lori Love is found on p2k’s corporate documents since at least November 2018, well before joining CleanSpark and the p2k acquisition.” Further, the report alleges that “n effect, CleanSpark appears to have purchased the side business of its CFO, with zero relevance to the Company’s supposed clean energy mission.”įollowing this news, CleanSpark's stock price fell $3.63 per share, or 9.23%, to close at $35.71 per share on January 14, 2021. On January 14, 2021, Culper Research published a report entitled "Cleanspark (CLSK): Back to the Trash Can." According to the Culper Research report, “CleanSpark’s promotional charade has spanned marijuana, clean energy, “SaaS”, electric vehicles, and, most recently, bitcoin.”Īccording to the complaint, the Culper Research report claims that CleanSpark has "fabricated key elements of its business, including purported customers and contracts" and that the Company is also "rife with undisclosed related party transactions." For example, the Culper Research report alleges the entire February 2020 acquisition of p2k Labs, Inc. A complaint has been filed on behalf of investors who purchased CleanSpark securities between Decemand Janu(the “Class Period”). (“CleanSpark” or the “Company”) (NASDAQ: CLSK). 19, 2021 (GLOBE NEWSWIRE) - Kaplan Fox & Kilsheimer LLP ( is investigating claims on behalf of investors of CleanSpark, Inc.
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