Argo Blockchain was sued for misrepresenting and providing incomplete information to its investors during its initial public offering.
The legal processes of crypto companies have started to leave their mark on this year as well. The tough fight, especially between Ripple and the SEC, is expected to come to a final conclusion this year. On the other hand, many companies were sued due to the collapse of the cryptocurrency market. Crypto mining company Argo Blockchain has faced a class action lawsuit for misrepresenting and providing incomplete information to its investors.
Argo Blockchain Has Been Sued For Misleading Investors
Crypto mining company Argo Blockchain is working hard to avoid bankruptcy. The company had sold a $65 million facility to Galaxy Digital. The mining company, which has undergone difficult processes, will now fight with a class action lawsuit.
Argo Blockchain investors have filed a class action lawsuit against the mining company for making false statements and failing to share important information during its initial public offering in 2021.
The following statements were made in the case:
“The Documents of Offering were negligently prepared and, as a result, contained false statements of material fact or were omitted without specifying other necessary facts so that statements made were not misleading.”
The lawsuit involved making investors believe the exaggerated data of the miner’s financial prospects. In a statement in the lawsuit, it was underlined that investors would not participate in this IPO if they knew the facts.
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