Did you lose money on investments in Marathon Digital Holdings? If so, please visit Marathon Digital Holdings, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or firstname.lastname@example.org to discuss your rights.
NEW YORK, March 31, 2023 (GLOBE NEWSWIRE) — Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Marathon Digital Holdings, Inc. (“Marathon” or the “Company”) (NASDAQ: MARA) between May 10, 2021 and February 28, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of Nevada and alleges violations of the Securities Exchange Act of 1934.
Marathon operates as a digital asset technology company that mines digital assets with a focus on the blockchain ecosystem and the generation of digital assets in the United States.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) the Company overstated the efficacy of its disclosure controls and procedures and internal control over financial reporting; (ii) as a result, the Company’s revenues and cost of revenue were materially misstated during the Class Period; and (iii) the foregoing, once revealed, was reasonably likely to have a material negative impact on the Company’s financial condition.
On February 28, 2023, Marathon issued a press release “announc[ing] . . . that it has cancelled its webcast and conference call for the fourth quarter and fiscal year 2022, initially scheduled for today, February 28, 2023, at 4:30 p.m. Eastern time, and will postpone the publication of its corresponding financial results.” That same day, Marathon disclosed receipt of a letter from the SEC relating to accounting errors in the Company’s previously issued financial statements. The Company advised investors that the “statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the previously issued unaudited condensed consolidated financial statements for the interim periods in 2022 and 2021 as contained in the Company’s Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2021 and 2022, June 30, 2021 and 2022 and September 30, 2021 and 2022 . . . should no longer be relied upon” and will be restated.
Also on February 28, 2023, market analyst Seeking Alpha commented on Marathon’s announcement, stating that “[t]he company said its method for calculating the impairment of digital assets, chiefly bitcoin , on a daily basis using a standard cutoff time wasn’t in compliance with a requirement that calls for the intraday low price to be used,” and, as such, “Marathon  now estimates that both its revenue and cost of revenue for the year ended Dec. 31, 2021 were understated. Revenue [. . .], energy, hosting and other, are expected to increase in the restated 2021 numbers.”
On this news, Marathon’s stock price fell $0.59 per share, or 8.31%, to close at $6.51 per share on March 1, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than May 30, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Marathon securities, and/or would like to discuss your legal rights and options please visit Marathon Digital Holdings, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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