According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- Applied Digital had overstated the profitability of its datacenter hosting business and its ability to successfully transition into a low-cost AI Cloud services provider;
- Applied Digital’s Board of Directors was not independent within the meaning of NASDAQ listing rules;
- accordingly, Applied Digital had overstated the efficacy of its business model and failed to maintain proper corporate governance standards;
- the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm; and
- as a result, the Company’s public statements were materially false and misleading at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Attorney Advertising. Prior results do not guarantee a similar outcome.