{"id":70189,"date":"2022-11-16T18:15:04","date_gmt":"2022-11-16T16:15:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70189"},"modified":"2025-09-08T00:37:43","modified_gmt":"2025-09-07T21:37:43","slug":"class-action-lawsuit-filed-against-core-scientific","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/class-action-lawsuit-filed-against-core-scientific\/","title":{"rendered":"Class-action lawsuit filed against Core Scientific"},"content":{"rendered":"

A shareholder of Core Scientific filed class-action lawsuit<\/a> against the mining company for concealing adverse financial factors that led to investor losses.<\/p>\n

The plaintiff Mei Pan alleges that from March 3 to October 28, 2022 the firm also made “false or misleading statements.”<\/p>\n

According to the filing, on March 3 Culper Research published a report asserting that Core Scientific overstated its profitability and entered into a dispute with the hosting industry’s largest client \u2014 Gryphon Digital Mining. It emerged that the latter did not have enough funds to purchase the devices agreed to be hosted.<\/p>\n

Core Scientific’s shares fell 9.4% that day, closing at $6.98.<\/p>\n

On September 28 another client of the firm, Celsius, filed a petition in court. In bankruptcy proceedings<\/a> the company alleged that Core Scientific violated the hosting agreement terms, delayed installation timelines, and charged unjustified markups to the payment.<\/p>\n

Against this backdrop, the stock fell 10.3% to $1.30.<\/p>\n

On October 27 the mining company said that by the end of the year it may exhaust its cash and equivalents. In Core did not rule out filing for bankruptcy protection<\/a> to protect against creditors.<\/p>\n

On that trading day the shares plunged 78.1% to $0.221, on “anomalously high” trading volume.<\/p>\n

The plaintiff also noted that the company concealed from shareholders the expiration of the preferential electricity pricing agreement. As a result, tariffs rose more than double, increasing costs for self-mining.<\/p>\n

\"\u041f\u0440\u043e\u0442\u0438\u0432
Data: MarketWatch<\/a>.<\/figcaption><\/figure>\n

Mei Pan is seeking recovery of the losses incurred, including interest adjudicated by the court, and reimbursement of “reasonable costs” of the proceedings.<\/p>\n

All investors in the company in “similar circumstances” may join the claim, according to the filing.<\/p>\n

The defendants in the case, alongside the company, include President and CEO Michael Levitt, former CFO Michael Tshupek (until April 4), and current CFO Denise Sterling.<\/p>\n

As of this writing, Core Scientific’s Nasdaq shares were trading around $0.21. Since the session opened, the stock had fallen more than 8%.<\/p>\n

\"\u041f\u0440\u043e\u0442\u0438\u0432
Source: MarketWatch.<\/figcaption><\/figure>\n

As of October, the aggregate revenue of bitcoin miners rose only 7%<\/a> to $589.7 million. In the previous month the figure fell by 19%<\/a>.<\/p>\n

Follow ForkLog’s bitcoin news on our Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"

A shareholder of Core Scientific filed a class-action lawsuit against the mining company for concealing adverse financial factors that led to investor losses.<\/p>\n","protected":false},"author":1,"featured_media":70190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1271,1162,27],"class_list":["post-70189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-core-scientific","tag-court-cases","tag-russia"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=70189"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70189\/revisions"}],"predecessor-version":[{"id":70191,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70189\/revisions\/70191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/70190"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=70189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=70189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=70189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}