Datacenter operator Applied Digital Corp. misled investors about its board members’ independence and business model in initial public offering disclosures, a suit says.
The offering documents mentioned close connections with the April 2022 IPO’s main underwriter B. Riley Financial Inc., including Applied CEO Wesley Cummins serving as president of B. Riley Asset Management and two board members who had similarly close ties. The company and its leadership also allegedly overstated the profitability of the business, according to the complaint filed in US District Court for the Northern District of Texas.
One month after the IPO, Applied Digital announced that ...
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