Robbins Geller Rudman & Dowd LLP announces that purchasers of Stronghold Digital Mining, Inc. Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Stronghold Digital Mining’s October 2021 initial public offering (“IPO”) have until June 13, 2022 to seek appointment as lead plaintiff in Winter v. Stronghold Digital Mining, Inc., No. 22-cv-03088 (S.D.N.Y.). Commenced on April 14, 2022, the Stronghold Digital Mining class action lawsuit charges Stronghold Digital Mining, certain of its top executive officers and directors, as well as the IPO’s underwriters with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the Stronghold Digital Mining class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Stronghold Digital Mining class action lawsuit must be filed with the court no later than June 13, 2022.
CASE ALLEGATIONS: Stronghold Digital Mining is a crypto asset mining company focused on mining Bitcoin. In the IPO, Stronghold Digital Mining sold 7,690,400 shares of Class A common stock at a price of $19.00 per share. Stronghold Digital Mining received net proceeds of approximately $132.5 million from the IPO. The proceeds from the IPO were purportedly to be contributed to Stronghold LLC in exchange for Stronghold LLC Units, and Stronghold LLC would purportedly use the net proceeds for general corporate purposes, including for acquisitions of miners and power generating assets.
The Stronghold Digital Mining class action lawsuit alleges that the IPO’s Registration Statement was materially false and misleading and omitted to state that: (i) contracted suppliers, including Minerva Semiconductor Corp., were reasonably likely to miss anticipated delivery quantities and deadlines; (ii) due to strong demand and pre-sold supply of mining equipment in the industry, Stronghold Digital Mining would experience difficulties obtaining miners outside of confirmed purchase orders; (iii) as a result, there was a significant risk that Stronghold Digital Mining could not expand its mining capacity as expected; (iv) thus, Stronghold Digital Mining would likely experience significant losses; and (v) consequently, defendants’ positive statements about Stronghold Digital Mining’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 29, 2022, Stronghold Digital Mining reported a net loss of $0.52 for the fourth quarter of 2021, below analyst estimates of $0.04 earnings per share, while Stronghold Digital Mining’s Chief Executive Officer cited “significant headwinds in our operations which have materially impacted recent financial performance.” On this news, Stronghold Digital Mining’s stock price fell approximately 32%.
By the commencement of the Stronghold Digital Mining class action lawsuit, Stronghold Digital Mining’s stock has traded as low as $4.78 per share.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser of Stronghold Digital Mining Class A common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the Stronghold Digital Mining class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Stronghold Digital Mining class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Stronghold Digital Mining class action lawsuit. An investor’s ability to share in any potential future recovery of the Stronghold Digital Mining class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2021 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering nearly $1.9 billion for investors last year, more than triple the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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