Core Scientific Class Action Lawsuit CORZ | Deadline January 13, 2023

Core Scientific Class Action Lawsuit (CORZ Lawsuit)

A lawsuit has been filed in the Western District of Texas against Core Scientific Inc., (CORZ: NASDAQ) as the Company’s largest customer, Gryphon, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host. The stock fell 98%.

What is the Core Scientific Lawsuit About?

The Core Scientific Class Action Lawsuit (NASDAQ:CORZ) (Core Scientific Class Action Lawsuit) was filed after the market closed on October 26, 2022.

On October 27, 2022, before the market opened, Core Scientific disclosed that “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” and that it is exploring alternatives to its capital structure. 

Is There A Core Scientific Class Action Lawsuit?

CORZ:NASDAQ Class Action Lawsuit (CORZ)  was filed on November 14, 2022 on behalf of the shareholders.

On March 3, 2022, Culper Research published a report about Core Scientific alleging, among other things, that the Company had overstated its profitability and that the Company’s largest customer lacked the financial resources to deliver the rigs pursuant to its contract. 

On this news, Core Scientific’s stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022, thereby injuring investors.

On September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific “has knowingly and repeatedly violated the automatic stay provisions” by refusing to perform its contractual obligations, threatening to terminate the companies’ agreement, and adding improper surcharges.

On this news, Core Scientific’s stock price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022, thereby injuring investors.

On October 27, 2022, before the market opened, Core Scientific disclosed that “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” and that it is exploring alternatives to its capital structure.

Moreover, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.

On this news, Core Scientific’s stock fell $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022, on unusually high trading volume.

Is There A Deadline For The Core Scientific Lawsuit?

The deadline for the Core Scientific Class Action Lawsuit (NASDAQ:CORZ) (Core Scientific Inc.) is January 13, 2023 for a Lead Plaintiff.

How Much Did Shareholders Lose In CORZ Stock?

Shareholders who held Core Scientific securities saw stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022, $0.15, or 10.3%, to close at $1.30 on September 29, 2022 and $0.789, or 78.1%, to close at $0.221 per share on October 27, 2022 on unusually high trading volume.

What Is The Core Scientific Lawsuit Complaint?

CORZ class action lawsuit (Core Scientific Class Action Lawsuit) has been filed on behalf of investors who purchased Core Scientific Class Action Lawsuit (CORZ) securities between January 03, 2022 – October 26, 2022, inclusive. For more on the CORZ Lawsuit please contact us today.

According to the Core Scientific lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:

(1) that, due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing power costs;

(2) that the Company’s largest customer, Gryphon, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host;

(3) that the Company was not providing hosting services to Celsius as required by their contract;

(4) that the Company had implemented an improper surcharge to pass through power costs to Celsius;

(5) that, as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability to defend itself against Celsius;

(6) that, as a result of the foregoing, the Company’s profitability would be adversely impacted;

(7) that, as a result, there was likely substantial doubt as to the Company’s ability to continue as a going concern;

(8) and that as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you suffered a loss in CORZ, you have until January 13, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.

Securities Class Action Attorneys

Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

What Is The Lead Plaintiff Process?

THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired CORZ securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The CORZ class-action lawsuit is directed by the lead plaintiff. To litigate the Core Scientific Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the CORZ Class Action Lawsuit.

What Does CORZ Do?

Core Scientific, Inc. operates facilities for digital asset mining and colocation services in North America.

It provides blockchain infrastructure, software solutions, and services. The company mines digital assets for its own account and provides hosting colocation services for other large-scale miners. It operates in two segments, Equipment Sales and Hosting.

The company owns and operates computer equipment that is used to process transactions conducted on one or more blockchain networks in exchange for transaction processing fees rewarded in digital currency assets, commonly referred to as mining; and datacenter facilities to provide colocation and hosting services for distributed ledger technology, also commonly known as blockchain.

It also develops blockchain-based platforms and applications, including infrastructure management, security technologies, mining optimization, and recordkeeping.

The company is headquartered in Austin, Texas.