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Riot Blockchain Beats Investor Pump-and-Dump Scheme Allegations

May 1, 2020, 6:11 PM

Riot Blockchain Inc. won’t have to face accusations it worked with large investors to inflate its stock price through manipulative trading and then dump shares after a New Jersey federal district judge dismissed the case.

The company allegedly denied having a material relationship with the selling stockholders, who had acquired substantial stakes in Riot Blockchain, and didn’t disclose their trading. But the investors didn’t adequately allege that Riot Blockchain’s statements were false or misleading, the U.S. District Court for the District of New Jersey said Thursday in an unpublished opinion.

The investors argued that Riot Blockchain’s material relationship denial misled ...