Lead Plaintiff Deadline: 03/22/2021
SUMMARY OF CASE:
A securities class action has been filed against CleanSpark, Inc. (CLSK) on behalf of persons and entities that purchased or otherwise acquired CleanSpark securities between December 31, 2020 through January 14, 2021. This case has been filed in the USDC – S.D.N.Y.
The Complaint alleges that on January 14, 2021, Culper Research published a report titled “Cleanspark (CLSK): Back to the Trash Can,” alleging, among other things, that CleanSpark has “fabricated key elements of its business, including purported customers and contracts” and is also “rife with undisclosed related party transactions.”
On this news, the Company’s share fell $3.63 per share, or 9%, to close at $35.71 per share on January 14, 2021, thereby injuring investors. The stock continued to decline the next trading session by $4.56, or 13%, to close at $31.15 per share on January 15, 2021.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had overstated its customer and contract figures; (2) that several of the Company’s recent acquisitions involved undisclosed related party transactions; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.