LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York captioned Winter c. Stronghold Digital Mining, Inc., et al., Case No. 22-cv-3088, on behalf of persons and entities that have purchased or otherwise acquired Stronghold Digital Mining, Inc. (“Stronghold” or the “Company”) (NASDAQ: SDIG) Class A Common Stock pursuant to and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s October 2021 IPO (“IPO” or the “Offering “). Plaintiff is pursuing claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby informed that they have 60 days from this notice ask the Court to serve as lead plaintiff in this action.
If you have suffered a loss on your Stronghold investments or would like to inquire about possible claims to recover your loss under federal securities laws, you may submit your contact information at www.glancylaw.com/ cases/stronghold-digital-mining-inc/. You may also contact Charles H. Linehan, of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] or visit our website at www.glancylaw.com for learn more about your rights.
In October 2021, the Company completed its IPO, selling 7,690,400 shares of Class A common stock at $19.00 per share.
On March 29, 2022, after market close, Stronghold announced its fourth quarter and full year 2021 financial results. The company reported a net loss of $0.52 for the quarter, below analyst estimates of $0.04 in earnings per share, and Stronghold’s CEO cited “significant headwinds in our operations that have had a significant impact on recent financial performance.”
On this news, the company’s stock price fell $3.28, or 32%, to close at $6.97 per share on March 30, 2022. As of April 14, 2022, Stronghold stock fell was trading as low as $4.78 per share, a more than 75% drop from the IPO price of $19 per share.
The complaint filed in this class action alleges that the registration statement was materially false and misleading and failed to state: (1) that contracted suppliers, including MinerVa, were reasonably likely to miss quantities and deadlines scheduled deliveries; (2) that due to the high demand and pre-sold supply of mining equipment in the industry, Stronghold would have difficulty obtaining miners outside of confirmed purchase orders; (3) that as a result of the foregoing, there was a significant risk that Stronghold would not be able to expand its mining capacity as planned; (4) that as a result, Stronghold would likely suffer significant losses; and (5) therefore, defendants’ statements about its business, operations and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
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If you have purchased or otherwise acquired Class A common stock of Stronghold pursuant to and/or traceable to the IPO, you may move the court no later than 60 days from this notice ask the Tribunal to appoint you as the principal plaintiff. To be a member of the Group, you do not have to perform any action at the moment; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the Class. If you would like to know more about this action, or if you have any questions about this announcement or your rights or interests in respect of these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
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