Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Filed Against Marathon Digital Holdings, Inc.

Time:2022-01-10 Source: 663 views Trending Copy share

The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed in the United States District Court for the District of Nevada against Marathon Digital Holdings, Inc. f/k/a Marathon Patent Group, Inc. (“Marathon”) (NASDAQ: MARA). The action charges Marathon with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Marathon’s materially misleading statements to the public, Marathon investors have suffered significant losses.

MARATHON’S ALLEGED MISCONDUCT
Marathon is a digital asset technology company that primarily engages in mining cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. On October 13, 2020, Marathon issued a press release announcing the formation of the Beowulf Joint Venture. That press release represented that the Beowulf Joint Venture was “focused on delivering low cost power to Marathon’s Bitcoin mining operations [,]” while also asserting various purported benefits that would flow to Marathon in connection with that joint venture.

On November 15, 2021, the truth regarding the Beowulf Joint Venture was revealed when Marathon reported its third-quarter 2021 financial results through the filing of a Form 10-Q. In the report, Marathon disclosed that the company received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) seeking documents concerning its Hardin, Montana data center. Specifically, Marathon revealed that “during the quarter ended September 30, 2021, [Marathon] and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility described in [Marathon’s] Form 8-K dated October 13, 2020.” The report went on to disclose that Marathon understands “that the SEC may be investigating whether or not there may have been any violations of the federal securities law.”

Following this news, Marathon stock fell $20.52, or 27%, to close at $55.40 per share on November 15, 2021.

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