Shareholder rights law firm Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased Marathon Digital Holdings, Inc. (MARA) - Get Marathon Digital Holdings Inc Report between October 13, 2020 and November 15, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. Marathon is a digital asset technology company that mines cryptocurrencies with a focus on blockchain ecosystem and the generation of digital assets in the U.S.
If you suffered a loss due to Marathon Digital Holdings, Inc.'s misconduct, click here.
Marathon Digital Holdings, Inc. (MARA) Violated U.S. Securities Laws
According to the complaint, in October 2020, Marathon announced a new joint venture with Beowulf Energy LLC purported focused on delivering low-cost power to Marathon's bitcoin mining operations. In connection with the joint venture, Marathon entered into a series of agreements to design and build a data center in Hardin, Montana. The Company issued six million shares of common stock to the parties of those agreements.
During the class period, defendants made false and misleading statements and failed to disclose that the joint venture, as it related to the Hardin facility, implicated potential regulatory violations, including U.S. securities law violations. As a result, the joint venture subjected Marathon to a heightened risk of regulatory scrutiny, which would have a material negative impact on the Company's business prospects.
On November 15, 2021, Marathon disclosed that "the Company and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility[,]" and advised that "the SEC may be investigating whether or not there may have been any violations of the federal securities laws." On this news, Marathon's stock fell over 27%, to close at $55.40 per share on November 15, 2021.
If you purchased shares of Marathon Digital Holdings, Inc. (MARA) between October 13, 2020 and November 15, 2021, you have until February 15, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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