CLASS ACTION UPDATE: Law Office of Brodsky & Smith Reminds Investors of Deadline in Class Action Against Core Scientific, Inc. (CORZ, CORZW)
Nov 25th, 2022 11:30 EST
Bala Cynwyd, Pennsylvania--(Newsfile Corp. - November 25, 2022) - Law office of Brodsky & Smith reminds investors of the deadline to file regarding claims against Core Scientific, Inc. ("Core Scientific" or the "Company") (NASDAQ: CORZ) (NASDAQ: CORZW) for possible breaches of Federal Securities law. Core Scientific is a blockchain computing data center provider and digital asset mining company.
If you purchased or otherwise acquired shares of Core Scientific between January 3, 2022 and October 26, 2022 (the "Class Period"), and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is January 13, 2023. You may contact Marc Ackerman, Esquire or Jason Brodsky, Esquire at Brodsky & Smith, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, visit https://www.brodskysmith.com/cases/core-scientific-inc-nasdaq-corz-corzw/, or call toll free 877-534-2590. There is no cost or obligation to you.
According to the filed complaint, on March 3, 2022, Culper Research published a report about Core Scientific alleging, among other things, that the Company had overstated its profitability and that the Company's largest customer lacked the financial resources to deliver the rigs pursuant to its contract.
On this news, Core Scientific's stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022.
On September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific "has knowingly and repeatedly violated the automatic stay provisions" by refusing to perform its contractual obligations, threatening to terminate the companies' agreement, and adding improper surcharges.
On this news, Core Scientific's stock price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022.
On October 27, 2022, before the market opened, Core Scientific disclosed that "given the uncertainty regarding the Company's financial condition, substantial doubt exists about the Company's ability to continue as a going concern," and that it is exploring alternatives to its capital structure. Moreover, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.
On this news, Core Scientific's stock fell $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022.
The lawsuit alleges that defendants failed to disclose to investors: (1) that, due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing power costs; (2) that the Company's largest customer, Gryphon, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host; (3) that the Company was not providing hosting services to Celsius as required by their contract; (4) that the Company had implemented an improper surcharge to pass through power costs to Celsius; (5) that, as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability to defend itself against Celsius; (6) that, as a result of the foregoing, the Company's profitability would be adversely impacted; and (7) that, therefore, there was likely substantial doubt as to the Company's ability to continue as a going concern.
Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
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