The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Core Scientific, Inc. (NASDAQ: CORZ) who purchased shares between January 3, 2022 and October 26, 2022. The action, which was filed in the United States District Court for the Western District of Texas, alleges that the Company violated federal securities laws.
In particular, the Core Scientific lawsuit alleges that (1) due in part to the expiration of a favorable pricing agreement, the Company was experiencing increasing power costs; (2) the Company’s largest customer, Gryphon Digital Mining, lacked the financial resources to purchase the necessary miner rigs for Core Scientific to host; (3) the Company was not providing hosting services to Celsius Network LLC ("Celsius") as required by their contract; (4) the Company had implemented an improper surcharge to pass through power costs to Celsius; (5) as a result of the foregoing alleged breaches of contract, the Company was reasonably likely to incur liability to defend itself against Celsius; (6) as a result of the foregoing, the Company’s profitability would be adversely impacted; (7) as a result, there was likely substantial doubt as to the Company’s ability to continue as a going concern; and (8) 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.
Shareholders have until January 13, 2023 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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