Securities Arbitration Lawyers BlogBit Digital, Inc. (BTBT) Subject Of Class Action Lawsuit
Bit Digital, Inc. (BTBT) is the subject of a class action lawsuit filed on behalf of shareholders. The class action lawsuit concerns alleged violations of federal securities laws and seeks to recover damages for investors.
If you have losses from investing in Bit Digital, Inc. (BTBT) during the class period between December 21, 2020 and January 8, 2021, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com.
Allegations In The Class Action
The complaint alleges that throughout the class period Bit Digital exaggerated the scope of its Bitcoin mining operations, and because of that their positive statements about the company and its prospects were misleading or lacked reasonable basis.
The class action lawsuit claims that investors suffered damages after the true details became known to the market. A class has not yet been certified in the action against Bit Digital. If you would like to be a lead plaintiff/class representative, you need to move the court before March 22, 2021.
About Bit Digital, Inc. (BTBT)
At the time it went public in 2018, Bit Digital was known as Golden Bull Limited. Trading under the symbol DNJR, the company claimed to operate a peer-to-peer (P2P) lending platform in China that connected individual lenders and small business borrowers.
At one point the company also claimed to operate a car leasing business. In September, 2020, the company changed its name to Bit Digital, Inc. (BTBT), and said that it was mining Bitcoin in China.
A Seeking Alpha article alleges that Bit Digital is not actually mining Bitcoin, and that their previous P2P lending and car rental businesses were fake as well. The article claims that four company executives are in jail and the former chairman and CEO of the company is being sought by Chinese police.
IPO And Underwriter
In March, 2018, Bit Digital, then using the name Golden Bull Limited, announced its initial public offering of 1,550,000 shares and gross proceeds of about $6.2 million. ViewTrade Securities, Inc. was the sole book-running manager for the offering.
Recover Bit Digital, Inc. (BTBT) Investment Losses
Silver Law Group is a nationally-recognized class action law firm representing victims of investment fraud. Our attorneys represent investors in class action lawsuits against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.