According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that:
- due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing power costs;
- the Company’s largest customer, Gryphon, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host;
- the Company was not providing hosting services to Celsius Network LLC and related entities (“Celsius”) as required by their contract;
- the Company had implemented an improper surcharge to pass through power costs to Celsius;
- as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability to defend itself against Celsius;
- as a result of the foregoing, the Company’s profitability would be adversely impacted;
- as a result, there was likely substantial doubt as to the Company’s ability to continue as a going concern; and
- as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis 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.
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