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CleanSpark, Inc. Class Action Lawsuit

19 days left to seek lead plaintiff status

Case Summary

Company Name
CleanSpark, Inc.
Stock Symbol
CLSK
Class Period
December 31, 2020 to January 14, 2021
Motion Deadline
March 21, 2021
Court
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.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased CleanSpark securities during the Class Period to seek appointment as lead plaintiff in the CleanSpark 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 CleanSpark class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the CleanSpark class action lawsuit.  An investor’s ability to share in any potential future recovery of the CleanSpark class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the CleanSpark class action lawsuit or have questions concerning your rights regarding the CleanSpark class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the CleanSpark 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.

Class Period: December 31, 2020 - January 14, 2021
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