A securities class action has been filed against Core Scientific, Inc. (CORZ) on behalf of persons and entities that purchased or otherwise acquired Core Scientific securities between January 3, 2022 through October 26, 2022. This case has been filed in the USDC – W.D.TX.
On March 3, 2022, Culper Research issued a report alleging, among other things, that Core Scientific “has wildly oversold both its mining and hosting businesses, which it cobbled together in a series of questionable transactions before dumping onto the market via SPAC. “Moreover, the Company had “waived the 180-day lockup on over 282 million shares, making them free to be dumped just 5 trading days” from the time of the report, showing that “insiders have abandoned any pretense of care for minority shareholders.”
On this news, Core Scientific’s stock price fell $0.72 per share, or 9.4%, to close at $6.98 per share on March 3, 2022.
Then, on September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific “has knowingly and repeatedly violated the automatic stay provisions” by refusing to perform its contractual obligations, threatening to terminate the companies’ agreement, and adding improper surcharges.
On this news, Core Scientific’s stock price fell $0.15 per share, or 10.3%, to close at $1.30 per share on September 29, 2022.
Finally, on October 27, 2022, Core Scientific disclosed that “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” and that it is exploring alternatives to its capital structure. Moreover, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.
On this news, Core Scientific’s stock price fell $0.79 per share, or 78.1%, to close at $0.22 per share on October 27, 2022.