HAGENS BERMAN Invites CleanSpark (CLSK) Investors with Losses to Contact Firm, Analyst Says CleanSpark Fabricated Customers and Contracts, Calls Shares "Uninvestible," Securities Fraud Case Filed
San Francisco, California--(Newsfile Corp. - January 26, 2021) - Hagens Berman urges CleanSpark, Inc. (NASDAQ: CLSK) investors to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
CleanSpark, Inc. (CLSK) Securities Fraud Class Action:
The complaint centers on whether Defendants misled investors about CleanSpark's business and operations by concealing that the company overstated contract and customer figures while touting the company's involvement in bitcoin mining and providing advanced software and controls technology solutions to solve modern energy challenges.
Investors began to learn the truth, according to the complaint, on Jan. 14, 2021, when Culper Research published a scathing report entitled "Cleanspark: Back to the Trash Can" and called CleanSpark's shares "uninvestible."
According to Culper's analysis, in acquiring ATL Data Centers in Dec. 2020, CleanSpark "has simply rebranded an otherwise failed, podunk operation in service of a gutless promotion attempt," and "Cleanspark's apparent lies and omissions aside, we think investors buying the stock for the Company's mining capabilities are paying Porsche 911 prices for what amounts to a broken-down Toyota Corolla."
In addition, Culper accuses CleanSpark of habitually fabricating and overstating claimed customers and contracts. According to Culper, it visited a microgrid project deployment site where the company claims it will provide power solutions to over 400 residential resort properties and saw "zero construction, merely empty desert, representative of the Company's many empty promises."
In response, the price of CleanSpark shares crashed lower.
"We're focused on investor losses and proving CleanSpark and certain insiders tricked investors with a fraudulent stock promotion scheme," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a CleanSpark investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding CleanSpark should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CLSK@hbsslaw.com.
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