NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Hut 8 Corp (NASDAQ:HUT). (Hut 8 or the Company) (NASDAQ: HUT) and reminds investors of the April 8, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Hut 8 To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 investing in Hut 8 stock or options between November 9, 2023 and January 18, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/HUT.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that one of USBTC's largest shareholders is an undisclosed related party; (2) that USBTC's 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.
In November 2023, Hut 8 formed following the merger of Hut 8 Mining (TSX:HUT) Corp. (Legacy Hut) and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (USBTC) (the Merger). USBTC held a 50% interest in a joint venture bitcoin mining facility, located in King Mountain, Texas (the King Mountain JV), which was acquired in the Merger.
On January 18, 2024, at approximately 10:30 AM EST, J Capital Research published a report which alleged, inter alia, that Hut 8's merger with USBTC was premised on a number of alleged misstatements, including (1) that the USBTC had an undisclosed related party as one of its largest shareholders, (2) that one of USBTC's core assets, the King Mountain JV, has historically failed to provide energy and high-speed internet, and (3) that the Company had misstated certain finances of the King Mountain JV by failing to account for certain interest expenses. Citing individuals highly familiar with USBTC, the report stated that, without the Merger, USBTC would have undergone bankruptcy and that USBTC had a value estimated to be 70% less than the approximately $745 million that Hut 8 paid to acquire it.
On this news, Hut 8's stock price fell $2.16, or 23.3%, to close at $7.12 per share on January 18, 2024, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Hut 8's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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