Shareholders of Argo Blockchain filed a class-action lawsuit against the British mining company for concealing key information during the IPO and for false statements. The documents were filed in the United States District Court for the Eastern District of New York.
The defendants named include the company itself, several of its executives and board members. The plaintiffs allege that Argo did not disclose the extent to which it was sensitive to capital constraints and electricity costs.
“The documents … contained false statements of material facts or failed to disclose other facts necessary to render the statements not misleading,” according to the complaint.
The plaintiffs alleged that the business turned out to be less resilient than they had thought. This led to an overstatement of the mining company’s financial prospects:
“If investors had known the truth, they would not have bought or otherwise acquired the securities … at inflated prices.”
Argo Blockchain applied for the listing of American depositary receipts for its shares on Nasdaq in August 2021. Trading of the instrument under the ticker ARBK began a month later.
In late October 2022, the company admitted that it could not complete the £24 million share sale.
In December, the London and New York stock exchanges announced a halt to trading in Argo Blockchain’s securities, without giving reasons.
In the same month, Nasdaq warned the company of a potential delisting — for 30 days its securities traded below $1, which was a rule violation. Later, Argo Blockchain requested to halt trading.
On 23 January 2023, Argo Blockchain met Nasdaq’s listing criteria.
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