• Argo Blockchain has been accused of violating federal securities law during its initial public offering of American depositary shares.
• The lawsuit claims that Argo’s „wrongful acts and omissions“ caused a „precipitous decline“ in ADS’s market value, leading to significant investor losses and damages.
• The complaint alleges that the company negligently prepared its IPO documents which hid crucial details that would affect its business profitability.
Argo Blockchain, a leading cryptocurrency mining company, is facing a class action lawsuit alleging federal securities law violations during its initial public offering of American depositary shares. The lawsuit claims that Argo’s “wrongful acts and omissions” caused a “precipitous decline” in ADS’s market value, leading to significant investor losses and damages.
The complaint was filed in the United States District Court for the Eastern District of New York and claims that Argo’s “material misstatements and omissions of fact” in its IPO documents misled potential investors and caused them to suffer losses. According to the complaint, Argo’s IPO documents neglected to disclose important information that would have had a significant impact on the company’s profitability, such as its inadequate IT infrastructure and its involvement in shady business practices.
The complaint alleges that Argo’s IPO documents contained false and misleading statements and omissions, which led to a drop in the company’s stock price. The lawsuit seeks to recover damages for those who purchased the ADS between the IPO date of May 21, 2021 and the filing date of November 16, 2021.
The complaint also alleges that Argo’s officers and directors were aware of the company’s inadequate IT infrastructure and failed to properly disclose it in the IPO documents. In addition, the complaint alleges that Argo was involved in questionable business practices, such as providing false and misleading statements about its operations and financial performance, as well as its use of crypto-currency for money laundering.
The lawsuit seeks to recover damages for those who purchased the ADS during the aforementioned period. It also seeks to enjoin Argo from committing any further violations of federal securities laws and to impose civil penalties against the company.
This is not the first time that Argo has been accused of violating federal securities laws. In 2020, the company was sued by investors who accused it of making false and misleading statements about its operations and performance. The company was also accused of making false and misleading statements about its use of cryptocurrency for money laundering.
Argo Blockchain has yet to respond to the allegations in the complaint and has not yet filed an answer to the complaint. It remains to be seen how Argo will respond to the allegations and what the outcome of the case will be.