Argo Blockchain mining company has received a class action lawsuit

  • Elena Klimovich
  • 11:00 Jan 28, 2023
  • 296
Argo Blockchain mining company has received a class action lawsuit

Times continue to be tough for bitcoin miner Argo Blockchain with a class action lawsuit filed against it. The company is accused of misleading investors. 

At issue is the IPO, which took place in 2021. Investors believe that during this period, statements were made by Argo that were untrue, and key information was omitted. 

The lawsuit was filed on Jan. 26 and alleges that Argo Blockchain failed to state the extent of its exposure to capital restrictions and failed to mention the existence of network difficulties and the cost of electricity. 

The preparation of the documents was sloppy, so misleading factors were allowed to appear in them. 

The investors claim that, as a result, the business was not as sound as advertised and the financial outlook was substantially overstated. 

Had we known the truth, we would have abstained from buying the securities or would not have bought them at knowingly inflated prices. 

At the time of its IPO filing, Argo issued 7.5 million securities at $15, generating proceeds of $105 mln. However, the price eventually dropped and is now at $1.96 per share. 

Note that the lawsuit was filed shortly after the BTC miner managed to regain its listing on the Nasdaq exchange. 

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