$BTC $ETH $BNB According to PANews (11/5), Bitcoin mining company Bitfarms (listed on Nasdaq) along with several senior executives are facing a class-action lawsuit for failing to timely disclose internal financial control deficiencies.
📌 Case Content:
Plaintiff: Bitfarms shareholders, represented by the law firm Pomerantz LLP.
Court: A lawsuit has been filed in the Eastern District Court of New York (USA).
Reason:
In March 2024, Bitfarms discovered a serious flaw in financial reporting controls, related to the classification of stock purchase warrants in 2021.
The company claims it is remedying the situation and will complete it by 2024, but is accused of concealing information, leading to a stock price plunge late last year.
⚖️ Legal Violation Allegations:
Misleading Statements: Bitfarms is suspected of making "misleading" statements about its business situation and prospects, violating the U.S. Securities Act.
Investor damages: BITF stock price plummeted sharply after the truth was revealed.
🔍 Bitfarms' Response:
The company has not made an official comment, but has previously asserted that it is "in the process of remedying".
Analysts believe this could be a prolonged legal risk, affecting Bitfarms' reputation.
