Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, advises investors that a securities class action lawsuit has been filed against Stronghold Digital Mining, Inc. (“Stronghold” or the “Company”) (NASDAQ: SDIG) and certain other defendants, alleging violations of federal securities laws. If you purchased shares of Stronghold, you are encouraged to contact a Scott+Scott attorney for additional information at (844) 818-6980, or at firstname.lastname@example.org. The lead plaintiff deadline is June 13, 2022.
Stronghold is a crypto asset mining company focused on mining Bitcoin. The Company held its initial public offering (“IPO”) in October 2021, at a price of $19.00 per share.
The lawsuit alleges that the IPO’s offering documents were materially false and misleading and omitted to state that: (i) the Company’s contracted suppliers, including Minerva Semiconductor Corp., were reasonably likely to miss anticipated delivery quantities and deadlines; (ii) due to strong demand and pre-sold supply of mining equipment in the industry, Stronghold would experience difficulties obtaining miners outside of confirmed purchase orders; (iii) as a result, there was a significant risk that Stronghold could not expand its mining capacity as expected; (iv) thus, Stronghold would likely experience significant losses; and (v) consequently, defendants’ positive statements about Stronghold’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 29, 2022, Stronghold reported a net loss of $0.52 for the fourth quarter of 2021, below analyst estimates of $0.04 earnings per share, while Stronghold’s Chief Executive Officer cited “significant headwinds in our operations which have materially impacted recent financial performance[.]”
On this news, Stronghold’s stock price fell approximately 32%, to close at $6.97 on March 30, 2022.
On the day the lawsuit was filed, April 13, 2022, the Company’s stock price closed at $4.84 per share.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is June 13, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Stronghold stock since the Company’s IPO, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or email@example.com.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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