Bit Digital, Inc. Class Action Lawsuit
- Company Name
- Bit Digital, Inc.
- Stock Symbol
- Class Period
- December 21, 2020 to January 8, 2021
- Motion Deadline
- March 21, 2021
- Southern District of New York
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.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Bit Digital securities during the Class Period to seek appointment as lead plaintiff in the Bit Digital class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Bit Digital class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Bit Digital class action lawsuit. An investor’s ability to share in any potential future recovery of the Bit Digital class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Bit Digital class action lawsuit or have questions concerning your rights regarding the Bit Digital class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Bit Digital class action lawsuit must be filed with the court no later than March 22, 2021.
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 seven 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.