Class Action Lawsuit Filed Against Hut 8 Corp.

Gainey McKenna & Egleston filed a securities class action lawsuit in the U.S. District Court for the Southern District of New York. It represents those who purchased or acquired Hut 8 Corp. securities between November 9, 2023, and January 18, 2024.

The business mines data and deals in cryptocurrency. The complaint states that the company was established after Hut 8 Mining Corp. and U.S. Data Mining Group, Inc., doing business as US Bitcoin Corp., merged in November 2023.

According to the complaint, the defendants made false and misleading statements or neglected to reveal that: (i) one of USBTC’s biggest shareholders is a closely held company; (ii) the company’s primary asset has a track record of failing to deliver high-speed internet and energy; and (iii) the profitability of some of the company’s assets was exaggerated.

The complaint also claims that on January 18, 2024, J. Capital Research released a study in which it was claimed, among other things, that certain purported misstatements served as the foundation for the company’s merger with USBTC. The news caused the price of the company’s stock to drop by over 23%.

Investors who bought Hut 8 shares or obtained them in another way should contact the firm before the lead plaintiff motion date of April 8, 2024. A lead plaintiff is a representative party managing the case on behalf of other class members.  

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2024-02-08 20:52