CORE SCIENTIFIC ALERT: Bragar Eagel & Squire, Computer Announces Class Action Lawsuit Has Been Filed Against Core Scientific, Inc. and Encourages Investors to Contact the Company | Biden News

CORE SCIENTIFIC ALERT: Bragar Eagel & Squire, Computer Announces Class Action Lawsuit Has Been Filed Against Core Scientific, Inc.  and Encourages Investors to Contact the Company

 | Biden News

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NEW YORK–(BUSINESS DATE)–Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Core Scientific, Inc. (“Core Scientific” or the “Company”) (NASDAQ: CORZ) in the United States District Court of Western Texas Austin Division (United States District Court of Western Texas Austin Division) on behalf of all persons and entities that purchased or otherwise acquired Core Scientific securities between January 3, 2022 and October 26, 2022, both dates inclusive (the “Class Period”). Investors have until January 13, 2023 to apply to the Court to be appointed as the main plaintiff in the lawsuit.

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Core Scientific is a blockchain computing data center provider and digital asset mining company. It mines digital assets for its own account and provides hosting services for other large-scale miners. It became a public company through a business combination with Power & Digital Infrastructure Acquisition Corp. (“XPDI”) executed on January 19, 2022 (the “Business Combination”).

On March 3, 2022, Culper Research published a report on Core Scientific alleging, among other things, that the Company had overstated its profitability and that the Company’s largest customer lacked the financial resources to deliver the platforms under its contract.

On this news, Core Scientific shares fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022, thus hurting investors.

On September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific “knowingly and repeatedly violated the automatic stay provisions” by refusing to perform its contractual obligations, threatening to terminate the agreement from the companies, and adding improper extra fees.

On this news, Core Scientific’s share price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022, thus hurting investors.

On October 27, 2022, before the market opened, Core Scientific disclosed that “given the uncertainty regarding the Company’s financial condition, there is substantial doubt about the Company’s ability to continue as a going concern,” and that it is investigating alternatives to its capital structure. . In addition, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.

On this news, Core Scientific shares fell $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022, on unusually high trading volume.

During the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors: (1) that, due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing electricity costs; (2) that the Company’s largest customer, Gryphon, lacked the financial resources to purchase the necessary mining rigs for Core Scientific to host; (3) that the Company did not provide hosting services to Celsius as required by their contract; (4) that the Company implemented an improper surcharge to pass through electricity costs to Celsius; (5) that, as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability to defend itself against Celsius; (6) that, as a result of the foregoing, the profitability of the Company would be adversely affected; (7) that, as a result, there was likely substantial doubt about the Company’s ability to continue as a going concern; (8) and that as a result of the foregoing, the Defendant’s positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Core Scientific stock and suffered a loss, are a long-time shareholder, have information, would like to learn more about these claims, or have questions about this announcement or your rights or interests with respect to these matters. , please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

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