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Oklahoma City, OK (January 22, 2021) – On January 20, 2021, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Cleanspark, Inc. (NASDAQ: CLSK). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is December 31, 2020 through January 14, 2021. More specifically, according to the complaint, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had overstated its customer and contract figures; (2) that several of the Company’s recent acquisitions involved undisclosed related party transactions; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On January 14, 2021, Culper Research published a report titled “Cleanspark (CLSK): Back to the Trash Can,” alleging, among other things, that Cleanspark has “fabricated key elements of its business, including purported customers and contracts” and is also “rife with undisclosed related party transactions.”
On this news, the Company’s share fell $3.63 per share, or 9%, to close at $35.71 per share on January 14, 2021, thereby injuring investors. The stock continued to decline the next trading session by $4.56, or 13%, to close at $31.15 per share on January 15, 2021.
Plaintiff seeks to recover damages on behalf of all Cleanspark, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, March 22, 2021 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org