CleanSpark, Inc. Class Action Lawsuit
- Company Name
- CleanSpark, Inc.
- Stock Symbol
- Class Period
- December 31, 2020 to January 14, 2021
- Southern District of New York
The CleanSpark, Inc. class action lawsuit charges CleanSpark and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of CleanSpark securities between December 31, 2020 and January 14, 2021, inclusive (the “Class Period”). The CleanSpark class action lawsuit was commenced on January 20, 2021 in the Southern District of New York and is captioned Bishins v. CleanSpark, Inc., No. 21-cv-00511.
CleanSpark provides software and controls technology solutions, including end-to-end microgrid energy modeling, energy market communications, and energy management solutions.
The CleanSpark class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that CleanSpark had overstated its customer and contract figures; (2) that several of CleanSpark’s recent acquisitions involved undisclosed related party transactions; and (3) that, as a result of the foregoing, defendants’ positive statements about CleanSpark’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On January 14, 2021, Culper Research published a report alleging, among other things, that CleanSpark has “fabricated key elements of its business, including purported customers and contracts” and that it is “rife with undisclosed related party transactions.” On this news, CleanSpark’s share price fell 9%, damaging investors. CleanSpark’s stock price continued its decline the next trading session, falling by an additional 13%, further damaging investors.
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