Core Scientific Sued For Unfavorable Financial Statements For Investors

According to a court document filed on Monday, Core Scientific has been sued for failing to disclose a number of unfavorable financial situations in its disclosures to shareholders this year.

Mei Pang, the plaintiff and shareholder, asserts that between March 3 of this year and October 28 of this year, the corporation willfully gave incorrect information to its shareholders.

Investigative financial research company Culper Research revealed in a study on March 3 that Core had overstated its profitability and had engaged in conflict with its main client, Bitcoin miner Gryphon. The requisite mining equipment for Core Scientific to host at its data center was unavailable to Gryphon due to a lack of funding.

Investor losses resulted from Core Scientific’s stock dropping $0.72, or 9.4%, to close at $6.98 on March 3, 2022, as a result of this news.

On September 28, Celsius asserted that Core Scientific, which hosts clients setting up their own mining operations in its data center, delayed the deployment of mining rigs Celsius had delivered to it and provided the rigs with less power than was required by the contract.

The company’s stock price dropped 78.1% to $0.789 on the day of the bankruptcy warning before closing at $0.221 per share.

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