Investors have filed a class action lawsuit accusing London-based Bitcoin (BTC) miner Argo Blockchain (ARBK) of making false statements and omitting important information during its 2021 public offering.
Argo Blockchain investors sued the Bitcoin miner for providing misleading information during the 2021 IPO. In this recent case Some executives from Argo company and board members targeted. The plaintiffs firm capital restrictions, electricity costs and how sensitive it is to network difficulties He claimed he did not disclose.
Investors, who went to court with these allegations, were convinced that the business was convinced. “less sustainable” He stressed that this situation led to the exaggeration of the miner’s financial expectations. The following details were included in the petition filed by the plaintiffs to the court:
The supply documents have been negligently prepared and, as a result, contain false statements regarding material facts or neglect to specify other facts necessary so that the statements made are not misleading. If investors had known the truth, they would not have bought or otherwise cleared the securities in question at inflated prices.
Argo, in this IPO in 2021 7.5 million shares selling for $15 It earned $105 million in revenue.. Since then, the mining company’s share price has lost value and Dropped as low as $0.36.
Nasdaqthe price of shares on December 16, repeatedly under $1 for 30 days warned against Argo Blockchain. Argo Blockchain, a facility owned by Mike Novogratz Galaxy DigitalConfidence in the company increased and the share price started to rise. At the time of writing the news ARBK share price from $1.96 is being traded.