Did you lose money on investments in Core Scientific? If so, please visit Core Scientific, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, NY / ACCESSWIRE / November 23, 2022 / Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Core Scientific, Inc. ("Core Scientific" or the "Company") (NASDAQ:CORZ) between January 3, 2022 and October 26, 2022, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Western District of Texas and alleges violations of the Securities Exchange Act of 1934.
Core Scientific is a blockchain computing data center provider and digital asset mining company. The Company mines digital assets for its own account and provides hosting services for other large-scale miners. Core Scientific became a public company via business combination with Power & Digital Infrastructure Acquisition Corp. ("XPDI"), which was consummated on January 19, 2022 (the "Business Combination").
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (1) due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing power costs; (2) the Company's largest customer, Gryphon, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host; (3) the Company was not providing hosting services to Celsius Network LLC ("Celsius"), as required by their contract; (4) the Company had implemented an improper surcharge to pass through power costs to Celsius; (5) as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability and have to defend itself against Celsius; (6) as a result of the foregoing, the Company's profitability would be adversely impacted; and (7) as a result, there was likely substantial doubt as to the Company's ability to continue as a going concern.
On March 3, 2022, Culper Research published a report about 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 rigs pursuant to its contract. On this news, Core Scientific's stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022.
Then, on September 28, 2022, Celsius and related entities filed a motion to enforce an automatic stay and for civil contempt in Celsius' bankruptcy proceedings, alleging that Core Scientific "has knowingly and repeatedly violated the automatic stay provisions" by refusing to perform its contractual obligations, threatening to terminate the companies' agreement, and adding improper surcharges. On this news, Core Scientific's stock price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022.
Finally, on October 27, 2022, before the market opened, Core Scientific disclosed that "given the uncertainty regarding the Company's financial condition, substantial doubt exists about the Company's ability to continue as a going concern," and that it was exploring alternatives to its capital structure. The Company also disclosed that it held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.
On this news, Core Scientific's stock fell $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than January 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Core Scientific securities, and/or would like to discuss your legal rights and options please visit Core Scientific, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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SOURCE: Bernstein Liebhard LLP