Crypto Miner, IPO Backers Can’t Shed Misrepresentation Suit

Stronghold Digital Mining Inc., its directors, and the underwriters of its initial public offering couldn’t beat most of the securities fraud claims plaintiffs who say they misrepresented the company’s crpyto mining capabilities, a federal judge said Thursday.

But Gulzar Ahmed lacks standing to sue Stronghold and individuals who oversaw the 2021 IPO, Judge Ronnie Abramssaid.

Ahmed can’t bring certain claims against Stronghold because he didn’t purchase shares directly during the IPO, Abrmas said for the US District Court for the Southern District of New York.

Section 12(a)(2) of the Securities Act doesn’t apply to shares purchased on the ...