After a Torrid 2022 that saw it sell off its flagship mining facility, Argo Blockchain’s woes are deteriorating after a recent class action suit.
Investors of Crypto mining firm Argo Blockchain have filed a class action lawsuit blaming the miner for offering false expressions and precluding key information during its initial public offering (Initial public offering) in 2021.
A new lawsuit was filed in January.It is aimed at the executives and board members of the company.It claims the firm failed to unveil that it was so powerless to capital constraints, power costs and network difficulties.
“The Offering Documents were carelessly designed and subsequently contained false facts or statements of fact that were then excluded to state other facts important to provide the expressions that were not misleading,” the complaint said.
Subsequently, the investors guarantee the business was “less maintainable” than they had been persuaded to think which prompted an overstatement of the miner’s financial possibilities. The complaint noted:
“Had the investors known reality, they wouldn’t have purchased securities at inflated prices and wouldn’t have obtained them at all.”
Argo released the information being referred to on Sep. 23, 2021, when the firm filed documents with the United States Securities and Exchange Commission (SEC) relating to its Initial public offering.
7.5 million Shares were issued to the general population on the same date at an offering price of $15 resulting in continues of $105 million before costs.
From that point forward, the miner’s share price has taken a beating and is currently trading at $1.96 per share in the wake of having fallen as low as $0.36.
Crypto miners overall had a torrid year in 2022 — with high Electricity prices, falling crypto prices and increased mining difficulty all eating into their bottom line.