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CleanSpark, Inc. Class Action Lawsuit

Company Name
CleanSpark, Inc.
Stock Symbol
CLSK
Class Period
December 31, 2020 to January 14, 2021
Court
Southern District of New York

Case Summary

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.

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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