Core Scientific received a class-action lawsuit

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Ultramining.com

19:20 Nov 16, 2022

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Core Scientific received a class-action lawsuit

The lawsuit was filed by one of the company's shareholders. It alleges that there was concealment on the part of the miner of factors that demonstrated financial difficulties. It led to losses.

May Pan, a shareholder, alleges that for several months this year there were statements from the company that proved false and misleading to stakeholders. In March, a report was published about Core Scientific overstating its earnings and starting a lawsuit with a major customer. It was about Gryphon Digital Mining. The miner turned out to be unable to purchase the devices based on agreements previously made. At that time, the shares of Core Scientific fell almost 10%.

On September 28, the court received information from the bankrupt Celsius, which claimed that Core Scientific was charging extra fees and disrupting installation deadlines for the miners. May Pan also noted that the end of the electricity rebate agreement was concealed from shareholders. It led to a doubling of costs.

The plaintiff is seeking damages and compensation for the costs of the process. Other investors who have found themselves in the same position may join this claim.

Core Scientific shares are now at $0.21.


Source: MarketWatch


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