PHILADELPHIA, April 03, 2024 (GLOBE NEWSWIRE) -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Hut 8 Corp. (“Hut 8” or the “Company”) (NASDAQ: HUT) on behalf of purchasers of Hut 8’s securities between November 9, 2023 and January 18, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Hut 8 securities during the Class Period may, no later than April 8, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or CLICK HERE.
Hut 8 is a crypto currency and data mining company which mines Bitcoin and delivers computing services to enterprise customers. Hut 8 formed following the November 2023 merger of Hut 8 Mining Corp. and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (“USBTC”) (the “Merger”).
On January 18, 2024, J Capital Research published a report which alleged, inter alia, that Hut 8’s merger with USBTC was premised on a number of alleged misstatements, including that: (1) USBTC had an “undisclosed related party” as one of its largest shareholders, (2) one of USBTC’s core assets, the King Mountain JV, “has historically failed to provide energy and high-speed internet,” and (3) the Company had misstated certain finances of the King Mountain JV by failing to account for certain interest expenses. The J Capital Research report stated that USBTC had a value estimated to be 70% less than the approximately $745 million that Hut 8 paid to acquire it.
Following this news, Hut 8’s stock price fell $2.16, or 23.3%, to close at $7.12 per share on January 18, 2024, on unusually heavy trading volume.
According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) one of USBTC’s largest shareholders is an undisclosed related party; (2) USBTC’s core asset - the King Mountain JV - has historically failed to provide energy and high-speed internet; and (3) the profitability of certain USBTC assets were overstated.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, 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.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
