NEW YORK, Dec. 07, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Core Scientific, Inc. ("Core" or the "Company") (NASDAQ: CORZ). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Core and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On March 3, 2022, Culper Research issued a report alleging, among other things, that Core Scientific "has wildly oversold both its mining and hosting businesses, which it cobbled together in a series of questionable transactions before dumping onto the market via SPAC." Moreover, the Company had "waived the 180-day lockup on over 282 million shares, making them free to be dumped just 5 trading days" from the time of the report, showing that "insiders have abandoned any pretense of care for minority shareholders."
On this news, Core Scientific's stock price fell $0.72 per share, or 9.4%, to close at $6.98 per share on March 3, 2022.
Then, 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 per share, or 10.3%, to close at $1.30 per share on September 29, 2022.
Finally, on October 27, 2022, 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 price fell $0.79 per share, or 78.1%, to close at $0.22 per share on October 27, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980