Proces intentat împotriva Argo Blockchain pentru inducerea în eroare a investitorilor

• Lawsuit was launched against Argo and many of its top executives and board members.
• The investors contend that the miner’s financial prospects were exaggerated.

In a class action lawsuit filed, investors in cripto miner Argo Blockchain claimed the company misled them during the IPO by making false representations and withholding key facts.

On January 26, a lawsuit was depusă against Argo and many of its top executives and board members. It asserts the company concealed its vulnerability to cash flow issues, high energy bills, and infrastructure challenges.

The lawsuit read:

„Documentele de ofertă au fost pregătite cu neglijență și, în consecință, au conținut declarații neadevărate de fapte semnificative sau au omis să menționeze alte fapte necesare pentru ca declarațiile făcute să nu inducă în eroare.”

Shares Price Plummeted

The investors contend that this means the miner’s financial prospects were exaggerated since the firm is “less sustainable” than they were led to expect.

The complaint mentioned:

„Dacă [investitorii] ar fi știut adevărul, ei nu ar fi cumpărat sau achiziționat în alt mod respectivele valori mobiliare sau nu le-ar fi cumpărat sau achiziționat în alt mod la prețurile umflate care au fost plătite.”

On September 23, 2021, Argo disclosed the data in filings with the United States Securities and Exchange Commission (SEC) for its first public offering (IPO).

On the same day, at an offering price of $15 per share, 7.5 million shares were sold to the public, bringing in $105 million before fees and costs. Shares of the mining company have taken a pounding since then, dropping to a low of $0.36 and now trading at $1.96.

In order to be listed on the Nasdaq Stock Market, a business must have a closing bid price of at least $1 for 10 consecutive trading days, a requirement that Argo fulfilled as recently as January 23.