Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against CleanSpark, Inc. (“CleanSpark” or the “Company”) (NASDAQ: CLSK) and certain of its officers, alleging violations of federal securities laws. If you purchased CleanSpark stock or securities between December 31, 2020 and January 14, 2021 (the “Class Period”), and have suffered a loss, you are encouraged to contact Joe Pettigrew for additional information at (844) 818-6982 or email@example.com.
CleanSpark provides advanced software and controls technology solutions, including end-to-end microgrid energy modeling, energy market communications, and energy management solutions.
The lawsuit alleges, among other things, that the 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, CleanSpark failed to disclose to investors: (1) that the Company had overstated its customer and contract figures; and (2) that several of the Company’s recent acquisitions involved undisclosed related party transactions.
The Class Period begins on December 31, 2020, when the Company issued a press release touting a “record revenue” year, stating in part that the Company had purchased ATL Data Centers, LLC through an “all stock” transaction and that therefore the Company expected to increase Bitcoin production at potentially the lowest total energy cost in America.
On January 14, 2021, Culper Research published a report, which alleges that CleanSpark “fabricated key elements of its business, including purported customers and contracts.” More specifically, the Culper Research report accuses CleanSpark of not disclosing (i) an imminent rate hike from its power provider, making production less feasible; (ii) that a large residential project that the Company stated it would provide microgrid solutions for was actually wasteland; and (iii) that multiple notable contracts the Company entered into were undisclosed related party transactions.
On this news, the Company’s stock price fell $3.63, over 9%, to close at $35.71 per share on January 14, 2021. The stock continued to decline the next trading session by $4.56, or 12.7%, to close at $31.15 per share on January 15, 202.
What You Can Do
If you purchased CleanSpark securities between December 31, 2020 and January 14, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or firstname.lastname@example.org. The lead plaintiff deadline is March 22, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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