Securities Arbitration Lawyers BlogCleanSpark, Inc. (CLSK) Subject Of Class Action Lawsuit
CleanSpark, Inc. (CLSK) 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 CleanSpark, Inc. (CLSK) during the class period between December 31, 2020 and January 14, 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 class action complaint alleges that CleanSpark made false and/or misleading statements throughout the class period and didn’t disclose to investors that the company overstated figures for contracts and customers, and that some of the company’s transactions involved undisclosed related party transactions. Because of that, it is alleged that the company’s statements about its operations and prospects were materially false.
On January 14, 2020, a report from Culper Research was published that alleged CleanSpark was “rife with undisclosed related party transactions” and “fabricated key elements of its business” such as customers and contracts. The report caused the company’s stock to decline by 9% the day the report was released and another 13% the day after.
The deadline to apply to be lead plaintiff is March 22, 2021.
About CleanSpark, Inc. (CLSK)
CleanSpark, which says it “provides energy software and control technology solutions worldwide”, held a public offering of almost 4.5 million shares in October, 2020. The offering raised about $40 million and H.C. Wainwright & Co. was the sole book-running manager for the offering.
Recover CleanSpark, Inc. (CLSK) 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.