PHILADELPHIA, Feb. 18, 2021 /PRNewswire/ -- Berger Montague is investigating potential securities fraud claims against CleanSpark, Inc. ("CleanSpark" or the "Company") on behalf of investors who purchased CleanSpark securities (NASDAQ: CLSK) between December 31, 2020 and January 14, 2021 (the "Class Period").
If you purchased CleanSpark securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Donnell Much at [email protected] or (215) 875-4667, or contact us at: www.bergermontague.com/cleanspark.
A recently filed lawsuit accuses the Company and members of its senior management of misleading investors about CleanSpark's business and operations – specifically, that the Company overstated contracts and customer relationships, as well as its ability to provide advanced technology solutions to solve modern energy challenges.
According to the complaint, investors learned the true state of the Company's health on January 14, 2021, when Culper Research published a report titled "Cleanspark: Back to the Trash Can." The Culper report stated that, in acquiring ATL Data Centers in December 2020, CleanSpark "has simply rebranded an otherwise failed, podunk operation in service of a gutless promotion attempt." Further, Culper asserted that "investors buying the stock for the Company's mining capabilities are paying Porsche 911 prices for what amounts to a broken-down Toyota Corolla."
Moreover, the report accused CleanSpark of "vastly overstat[ing] or simply fabricat[ing] key elements of its business," and described the Company as an "insider enrichment scheme" that was "rife with undisclosed related party transactions."
In response to this report, CleanSpark shares fell $3.63 – or 9% – to a closing price of $35.71 on January 14, 2021, and an additional $4.56 – or 13% – on January 15, to a closing price of $31.15.
If you purchased CleanSpark securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is March 22, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding CleanSpark are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
SOURCE Berger Montague