Bloomberg Law
Jan. 5, 2023, 8:48 PM

CleanSpark Investor Suit Over Bitcoin Mining Pivot Clears Hurdle

Martina Barash
Martina Barash

A proposed class action on behalf of CleanSpark Inc. shareholders related to the company’s shift from alternative energy to Bitcoin mining adequately pleads securities fraud, a federal court in New York ruled Thursday.

Two statements by CEO Zachary Bradford and one by board president S. Matthew Schultz—before and after CleanSpark’s acquisition of mining company ATL Data Centers Inc.—are actionable, Judge Loretta A. Preska said for the US District Court for the Southern District of New York. And the investors, relying in part on an unidentified former ATL employee, plausibly alleged omissions of material facts, along with the state of mind ...

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