NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed against Stronghold Digital Mining, Inc. (“Stronghold” or the “Company”) (NASDAQ: SDIG) in the United States District Court for the Southern District of New York on behalf of all persons and entities who have purchased or otherwise acquired Stronghold securities pursuant to the IPO the Company’s stock exchange on October 22, 2021 (the “Class Period”). Investors have until June 13, 2022 to ask the Court to be named lead plaintiff in the lawsuit.
Click on here to get in on the action.
In October 2021, the Company completed its IPO, selling 7,690,400 shares of Class A common stock at $19.00 per share.
On March 29, 2022, after market close, Stronghold announced its fourth quarter and full year 2021 financial results. The company reported a net loss of $0.52 for the quarter, below analyst estimates of $0.04 in earnings per share, and Stronghold’s CEO cited “significant headwinds in our operations that have had a significant impact on recent financial performance.”
On this news, the company’s stock price fell $3.28, or 32%, to close at $6.97 per share on March 30, 2022. As of April 14, 2022, Stronghold stock fell was trading as low as $4.78 per share, a more than 75% drop from the IPO price of $19 per share.
The complaint filed in this class action alleges that the registration statement was materially false and misleading and failed to state: (1) that contracted suppliers, including MinerVa, were reasonably likely to miss quantities and deadlines scheduled delivery times; (2) that due to the high demand and pre-sold supply of mining equipment in the industry, Stronghold would have difficulty obtaining miners outside of confirmed purchase orders; (3) that as a result of the foregoing, there was a significant risk that Stronghold would not be able to expand its mining capacity as planned; (4) that as a result, Stronghold would likely suffer significant losses; and (5) therefore, defendants’ statements about its business, operations and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
If you have purchased or otherwise acquired Stronghold stock and suffered a loss, are a long-term shareholder, have information, want to know more about such claims, or have questions about this announcement or your rights or interests in these questions, please contact Brandon Walker or Alexandra Raymond by email at email@example.com, by phone at (212) 355-4648, or by by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.