Marathon Digital Holdings, Inc.
Lead Plaintiff Deadline 05/30/2023
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of those who acquired Marathon Digital Holdings, Inc. (“Marathon” or the “Company”) (NASDAQ: MARA) securities during the period from May 10, 2021 through February 28, 2023 (the “Class Period”). Investors have until May 30, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Marathon operates as a digital asset technology company.
On February 28, 2023, Marathon issued a press release “announc[ing] . . . that it ha[d] cancelled its webcast and conference call for the fourth quarter and fiscal year 2022 . . . .” On the same day, in a Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”), Marathon disclosed receipt of a letter from the SEC relating to accounting errors in the Company’s previously issued financial statements. Seeking Alpha then commented on Marathon’s press release stating that Marathon’s estimated revenue and cost of revenue for the 2021 fiscal year were understated because the Company incorrectly calculated impairment on a daily basis of its digital assets and incorrectly accounted for revenue from a bitcoin mining pool that it had participated in and operated in late 2021 and early 2022. On this news, the price of Marathon shares declined by $0.59 per share, or approximately 8.31%, from $7.10 per share to close at $6.51 on March 1, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as 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; and (iii) the foregoing, once revealed, was reasonably likely to have a material negative impact on the Company’s financial condition.