Bit Digital, Inc. Class Action Lawsuit
- Company Name
- Bit Digital, Inc.
- Stock Symbol
- Class Period
- December 21, 2020 to January 8, 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.
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