Several law firms extend offers to represent Hut 8 investors who suffered losses on the Nasdaq amidst short-selling accusations.
On Jan. 19, Hut 8’s Bitcoin (BTC) mining firm saw a 23% drop in share prices following an unverified J Capital report alleging insider plans to dump stocks. Hut 8 refuted the report on Jan. 24, denouncing all short-selling allegations.
The J Capital report implicates Hut 8’s partner, USBTC, in a troubled $725-million merger deal. CEO Jaime Leverton resigned, replaced by Asher Genoot.
Law firms urge investors who bought Hut 8 stocks between Nov. 9, 2023, and Jan. 18, 2024, to join efforts in seeking settlement for losses. Interested shareholders are encouraged to contact chosen law firms by April 8, 2024.
Kuznicki Law accuses Hut 8 and its executives of federal securities law violations, alleging misstated finances impacting share prices.
Lawsuits target individual losses and propose compensation for all shareholders who bought stocks during the specified timeframe. Contingency fee arrangements protect participating shareholders from court fees.
On March 6, Hut 8 announced the closure of its Drumheller mining site in Alberta, Canada, citing power disruptions and escalating energy costs. Newly appointed CEO Genoot stated that various factors, including high energy expenses and voltage issues, significantly impacted Drumheller’s profitability.
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