The class-action lawsuit of the USA is alleging Argo of misleading their investors. The crypto mining company listed in London has misled their investors. Apparently Argo blockchain have inflated the prices of their stocks with the help of false and misleading statements. The blockchain allegedly tried to present false business operation and performance related news to inflate their share prices. This lawsuit against the company was then filed in the Southern district of NYC.
As per the news, a bunch of crypto investors who bought the shares of Argo back in 2020 were the main filers of the lawsuit. As per them, the company has created a bunch of misleading and false statements about their business operations and business performance.
A lot of companies have previously been found guilty of these charges, and probably a lot of others will follow their path too. However, we just wanted to tell you why companies do this? Well, one of the reasons is because they want to generate cash flow in the business and want to increase their profitability.
Argo Blockchain And Their Statement:
Argo blockchain in a statement have said that they will defend themselves against these claims and litigations. Also, the company said that all the information that they provide to their investors are accurate.
The blockchain company is currently the subject of legal proceedings, however, it is not their first time either. The company has been the subject of legal actions before when they found themselves as the subject of another class-action lawsuit back in 2020. This was in Canada and the charges back then were similar too. That case is still ongoing as well.
The legal action brought against Argo Blockchain serves as a warning about the risks involved with funding bitcoin mining operations. These companies usually involve a lot of speculation, and it can be challenging to forecast how profitable they will be. Investors should always do extensive research and be aware of the hazards before making such investments.