Bitfarms Faces Class Action Lawsuit Over Alleged Misleading Statements

According to Foresight News, Nasdaq-listed mining company Bitfarms and certain executives are facing a class action lawsuit filed by the law firm Pomerantz in the U.S. District Court for the Eastern District of New York. The lawsuit stems from Bitfarms' disclosure in its March 2024 financial report of significant deficiencies in internal controls, specifically related to the classification of warrants issued in 2021. The company stated that its remediation plan is expected to be completed by 2024. These issues allegedly led to substantial false and misleading statements about the company's business, operations, and prospects, resulting in a decline in stock price at the end of last year. The lawsuit claims violations of U.S. securities laws.