Shareholder Alert: Robbins LLP Notifies Investors of Class Action Lawsuit Against Core Scientific, Inc. (CORZ)

SAN DIEGO–()–The class: Robbins LLP informs investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities who purchased or otherwise acquired securities of Core Scientific, Inc. (NASDAQ: CORZ, CORZW) between January 3, 2022 and October 26 2022, for violation of the Securities Exchange Act of 1934. Core Scientific is a blockchain computing data center provider and digital asset mining company.

And now: Likely situated shareholders may be eligible to participate in the class action lawsuit against Core Scientific, Inc. Shareholders who wish to be named the class lead plaintiff must file their documents by January 13, 2023. A lead plaintiff is a representative acting in the name of other class members in the conduct of the litigation. You don’t have to be in the case to be eligible for a clawback. For more information, click here.

All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.

What this case is about: Core Scientific, Inc. (CORZ) Shareholder Misled About Its Business Operations and Financial Outlook

According to the complaint, Core Scientific became a public company through a business combination with Power & Digital Infrastructure Acquisition Corp. (“XPDI”) made on January 19, 2022.

On March 3, 2022, Culper Research released a report on Core Scientific alleging, among other things, that the company had overstated its profitability and that the company’s largest customer lacked the financial resources to deliver the platforms in accordance with his contract. On this news, Core Scientific stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022.

Then, on September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in a bankruptcy proceeding alleging that Core Scientific “knowingly and repeatedly violated the automatic stay provisions “by refusing to perform its contractual obligations. obligations, threatening to terminate the companies’ agreement and adding inappropriate surcharges. On this news, Core Scientific stock price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022.

On October 27, 2022, Core Scientific disclosed that “given the uncertainty surrounding the Company’s financial condition, substantial doubt exists regarding the Company’s ability to continue as a going concern” and that it is exploring alternatives to its capital structure. Additionally, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022. On this news, Core Scientific stock fell $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022. .

As a result, the defendants failed to disclose to investors: (1) that, in part due to the expiration of a favorable pricing agreement, the company was experiencing rising electricity costs; (2) that the company’s largest customer, Gryphon, did not have the financial resources to purchase the mining rigs necessary for Core Scientific to host; (3) that the Company was not providing hosting services to Celsius as required by their contract; (4) that the Company had implemented an inappropriate surcharge to pass on electricity costs to Celsius; (5) that as a result of the breaches of contract alleged above, the Company was reasonably likely to incur liability to defend itself against Celsius; (6) that as a result of the foregoing, the Company’s profitability would be adversely affected; and (7) that, therefore, there was likely substantial doubt as to the Company’s ability to continue as a going concern.

Contact us for more information:

Aaron Dumas

(800) 350-6003

Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding corporate executives responsible for their wrongdoings since 2002. To be notified if a class action lawsuit against Core Scientific, Inc. settles or to receive free alerts when corporate executives commit wrongdoing, sign up for Watch Inventory today.

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