CleanSpark, Inc.

Investigation
01/20/2021

Initial Lawsuit
01/20/2021

Lawsuit Progression
12/02/2021

Investigation

Continous Holding
December 31, 2020 to January 14, 2021
Proposed Claim
Securities Violation

Did Cleanspark mislead investors about undisclosed ties in its recent acquisitions, false representations about bitcoin power supply cost, and lies about future contract potential?

Allegations made by short-seller Culer Research. This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Culer Attack

01/14/2021

Research Report (Short)

Following a late December 2020-early 2021 surge in stock price, short-seller Culer Research publishes a report with allegations about undisclosed ties in recent acquisitions, false representations about bitcoin power supply cost and lies about future contract potential.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$35.71	$39.34	$-3.63	-9.23%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 01/20/2021

A Cleanspark shareholder filed an investor class action lawsuit on behalf of persons and entities that purchased or otherwise acquired CleanSpark securities between December 31, 2020 and January 14, 2021, inclusive.

Filing Date
01/20/2021
Class Period
12/31/2020 to 01/14/2021
Transgression
Securities Violation
Filing Firms
Glancy Prongay & Murray LLP
The Law Offices of Frank R. Cruz
Case Title
Bishins v. Cleanspark, Inc.
Docket Number
1:21-cv-00511
Court
New York Southern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(i) that the Company had overstated its customer and contract figures;
(ii) that several of the Company’s recent acquisitions involved undisclosed related party transactions;
(iii) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis

Defendants

Company
CleanSpark, Inc.
Chief Executive Officer
Zachary Bradford
Chief Financial Officer
Lori Love

Lawsuit progression

Docket Number
1:21-cv-00511
Court
New York Southern District Court

Lead Counsel

12/02/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Glancy Prongay & Murray LLP
Lead Plaintiff
Individual
Free File
Order for lead

Amended Complaint

02/28/2022

Lead plaintiffs filed this securities class action amended complaint on behalf of persons and entities that purchased or otherwise acquired CleanSpark securities between December 10, 2020, and August 16, 2021, inclusive.