Investors related to crypto mining firm Argo Blockchain have filed a class-action lawsuit against the platform over giving false information and removing data during its 2021 initial public offering (IPO), according to Cointelegraph.
As per Cointelegraph, on January 26, 2023, a lawsuit was filed for Argo and its executives and board members. Insights from the lawsuit stated that the firm didn’t reveal its vulnerability towards capital constraints, electricity costs and network problems.
“The Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading. Had [the investors] known the truth, they would not have purchased or otherwise acquired said securities, or would not have purchased or otherwise acquired them at the inflated prices that were paid,” the lawsuit mentioned.
On the basis of information by Cointelegraph, on September 23, 2021, Argo unveiled the questioned information when the firm submitted its documents to United States Securities and Exchange Commission (SEC) for its IPO. It is believed that 7.5 million shares were also issued to the public at $15 to make a sum total of $105 million worth funds prior to expenses.
Moreover, Cointelegraph noted that the recent lawsuit has arrived post Argo reclaiming compliance of Nasdaq’s listing rule on January 23, 2023, On December 28, 2022, Argo unveiled its decision to sell its flagship mining facility, Helios, to digital asset investment manager Galaxy Digital for $65 million.
(With insights from Cointelegraph)