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Bit Digital, Inc. Class Action Lawsuit

Company Name
Bit Digital, Inc.
Stock Symbol
BTBT
Class Period
December 21, 2020 to January 8, 2021
Court
Southern District of New York

Case Summary

The Bit Digital, Inc. class action lawsuit charges Bit Digital and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Bit Digital securities between December 21, 2020 and January 8, 2021, inclusive (the “Class Period”).  The Bit Digital class action lawsuit was commenced on January 20, 2021 in the Southern District of New York and is captioned Pauwels v. Bit Digital, Inc., No. 21-cv-00515.

Bit Digital is a holding company that purports to engage in the bitcoin mining business through its wholly-owned subsidiaries in the United States and Hong Kong.

The Bit Digital class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that Bit Digital overstated the extent of its bitcoin mining operation; and (2) that, as a result of the foregoing, defendants’ positive statements about Bit Digital’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On January 11, 2021, J Capital Research issued a research report alleging, among other things, that Bit Digital operates “a fake crypto currency business” “designed to steal funds from investors.”  Though Bit Digital claims “it was operating 22,869 bitcoin miners in China,” J Capital alleged that “is simply a lie” and stated that “we verified with local governments supposedly hosting the [Bit Digital] mining operation that there are no bitcoin miners there.”  On this news, Bit Digital’s stock price fell approximately 25%, damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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