Argo Blockchain shareholders have just filed a class action lawsuit against the British cryptocurrency mining company for concealing key information during the initial public offering and making false statements.
The lawsuit has been filed against the company itself, several of its managers and board members. According to the plaintiffs, Argo failed to disclose how susceptible it was to capital constraints and electricity costs.
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According to the lawsuit:
"The documents contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading."
The plaintiffs have pointed out that the business was "less resilient" than they thought, leading to an overstatement of the mining company's financial prospects. They have said:
"If investors had known the truth, they would not have bought or acquired securities at inflated prices."