NEW YORK, Feb. 14, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Hut 8 Corp. (“Hut 8” or the “Company”) (NASDAQ: HUT) securities during the period of November 9, 2023 to January 18, 2024 inclusive (“the Class Period”). Investors have until April 8, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On January 18, 2024, J Capital Research published a report that asserted, among other claims, that the merger between Hut 8 Mining Corp and U.S. Data Mining Group, Inc., doing business as U.S. Bitcoin Group (USBTC) in November of 2023 was based on several alleged misrepresentations. These purported misstatements included (1) the presence of an “undisclosed related party” as one of the major shareholders of USBTC, (2) the historical failure of King Mountain JV, one of USBTC’s key assets, to deliver energy and high-speed internet, and (3) the Company’s misrepresentation of certain financial aspects of King Mountain JV by neglecting to account for specific interest expenses. The report, citing individuals deemed “highly familiar” with USBTC, contended that, without the merger, USBTC would have faced bankruptcy and that the estimated value of USBTC was 70% less than the approximately $745 million paid by Hut 8 for its acquisition. On this news, the price of Hut 8 shares declined by $2.16 per share, or approximately 22.28%, from $9.28 per share on January 17, 2024 to close at $7.12 on January 18, 2024.
The lawsuit alleges that throughout 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 one of USBTCs largest shareholders is an undisclosed related party; (2) that USBTCs core asset has historically failed to provide energy and high-speed internet; (3) that the profitability of certain USBTC assets were overstated; and (4) that, as a result of the foregoing, Defendants 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 Hut 8 securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
