Last Updated on January 27, 2023 by Bitfinsider
The action, which was filed on January 26, alleges that Argo’s offering documents were “negligently prepared” and contained false assertions or omitted crucial facts that would have rendered the statements misleading.
Argo’s resources and capacity to mine bitcoin (BTC) and maintain the Helios facility were allegedly constrained by severe capital and electricity shortages, as well as network issues.
These challenges made it increasingly impossible for Argo to fulfill its economic obligations, disproving the company’s previous claims of sustainability. Therefore, investors are holding Argo and its spokespeople liable for their false and misleading representations due to their lack of transparency.
The litigation emphasized the following: “Had (the investors) known the truth, they would not have purchased or otherwise acquired said securities, or would not have purchased or otherwise acquired them at the inflated prices that were paid.”
A recent press release reveals that a representative plaintiff will be selected to head the Argo class action lawsuit. The named plaintiff will have jurisdiction over all other class members in regards to the current action and will be able to choose a law firm to represent its legal interests. Investors have until March 27 to become the lead plaintiff in this lawsuit.
Argo continues to face obstacles
The Nasdaq Stock Market notified Argo on December 16, 2022, that its stock had violated Listing Rule 5450(a) of the Market by failing to maintain the minimum bidding price of $1 during the previous thirty consecutive working days (1).
The business needed to maintain the closing bid price at $1.00 for ten straight trading days in order to be in compliance once more. On January 13, Argo completed this condition, and on January 23, Nasdaq formally announced that Argo had done so.
In addition, Argo recently avoided a problem by selling its mining facility, Helios, in Dickens County, Texas, to Galaxy Digital for $65 million. Argo received a $35 million loan from Galaxy Digital to aid with their restructuring.
Following the current litigation, Argo may face additional difficulties in the future, which might harm its reputation in the market and cause price changes in the future for its shares.
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