A Core Scientific shareholder has filed a class action lawsuit against the crypto mining company for allegedly concealing adverse financial factors that led to losses for investors.
According to the plaintiff, Mei Pan, the company also made "false or misleading statements" between March 3 and October 28 of this year.
According to the document, last March 3, Culper Research published a report alleging Core Scientific had overstated its profitability and was in litigation with its largest hosting client, Gryphon Digital Mining. It turned out that the latter did not have sufficient financial resources to purchase the agreed devices.
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Core Scientific's stocks posted a 9.4% drop that day and ended up falling to $6.98.
Last September 28, another customer of the firm, Celsius, filed a motion with the court. The bankruptcy filing alleges that Core Scientific violated the terms of its hosting agreement, missed equipment installation deadlines and charged unreasonable premiums.
On October 27, the company announced that by the end of the year it may finally exhaust cash and cash equivalent reserves and has not ruled out filing for bankruptcy to protect itself from creditors.