Bitfarms faces lawsuit due to internal control errors

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Lawsuit report against Bitfarms

In May 2023, the cryptocurrency mining company Bitfarms, listed on Nasdaq, was sued in a class action by the law firm Pomerantz in the U.S. District Court for the Eastern District of New York.

Shortcomings in financial control

In March 2024, Bitfarms discovered a serious deficiency in internal financial reporting controls related to the classification of warrants from 2021. The company has made corrective statements and will complete the plan by 2024.

Allegations of misinformation

These actions indicate that Bitfarms may have made misleading and false statements about its business operations and prospects. As a result, the company's stock price plummeted at the end of last year.

Suspicion of securities law violation

These actions raise doubts about Bitfarms' potential violation of U.S. securities laws. The company is committed to implementing remedial measures to address this issue.

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