A class-action lawsuit has been filed in the Southern District of New York against the Nasdaq-listed mining company Bit Digital. Investor Anthony Powell accused the defendant of making misleading statements and of causing substantial financial damage.
On January 11, 2021, analysts from J Capital Research found that Bit Digital had provided inaccurate information about the number of ASIC miners in China. After that, the company’s shares plunged 25% (to $18.76). At the time of writing, the price stood at $16.74.
Data: Nasdaq.
On January 19, Bit Digital issued a rebuttal. According to its representatives, all documentation is posted on the U.S. Securities and Exchange Commission (SEC) website.
“The company has aimed to provide the most up-to-date operating data to public investors and regulators,” said Bit Digital.
The plaintiff argued that management could have controlled the content of the reports.
Powell seeks compensation from Bit Digital for losses arising from unlawful actions and for reasonable legal costs. The plaintiff noted that on December 31, 2020, he purchased 1,000 shares of the company at $21.81 each.
a6b7030402f9f4eb21f8b4a6e14eeb7f by ForkLog on Scribd
As reported in October 2020, Bit Digital filed with the SEC a bitcoin mining report valued at $10 million.
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