January 20, 2021 - An investor in shares of CleanSpark, Inc. (NASDAQ: CLSK) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by CleanSpark, Inc. in connection with certain allegedly false and misleading statements made between December 31, 2020 and January 14, 2021.
Woods Cross, UT based CleanSpark, Inc. provides energy software and control technology solutions worldwide. CleanSpark, Inc. reported that its Total Revenue rose from $4.53 million for the 12 months period that ended on September 30, 2019 to $10.02 million for the 12 months period that ended on September 30, 2020, and that its normalized Loss increased over those time periods from $19.18 million to $25.57 million.
On January 14, 2021, a report was published titled Cleanspark (CLSK): Back to the Trash Can, alleging, among other things, that CleanSpark has fabricated key elements of its business, including purported customers and contracts and is also rife with undisclosed related party transactions. According to the complaint the plaintiff alleges on behalf of purchasers of CleanSpark, Inc. (NASDAQ: CLSK) common shares between December 31, 2020 and January 14, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 31, 2020 and January 14, 2021, the defendants failed to disclose to investors that the Company had overstated its customer and contract figures, that several of the Company’s recent acquisitions involved undisclosed related party transactions, and 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.