Marathon investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than February 15, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Marathon Digital Holdings, Inc. f/k/a Marathon Patent Group, Inc. (“Marathon”) (NASDAQ: MARA) securities between October 13, 2020 and November 15, 2021, both dates inclusive (the “Class Period”).
Case Background:
Marathon is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets in U.S. The company was formerly known as “Marathon Patent Group, Inc.” and changed its name to “Marathon Digital Holdings, Inc.” on March 1, 2021. In October 2020, Marathon announced the formation of a new joint venture with Beowulf Energy LLC (“Beowulf”) purportedly focused on delivering low-cost power to Marathon’s Bitcoin mining operations (the “Beowulf Joint Venture”). In connection with the Beowulf Joint Venture, Marathon entered into a series of agreements with multiple parties to design and build a data center in Hardin, Montana (the “Hardin Facility”), issuing 6 million shares of its common stock to the parties of those agreements.
The Class Period commences on October 13, 2020, when Marathon issued a press release announcing the formation of the Beowulf Joint Venture. That press release represented that the Beowulf Joint Venture was “focused on delivering low cost power to Marathon’s Bitcoin mining operations[,]” while also asserting various purported benefits that would flow to Marathon in connection with that joint venture.
The truth regarding the Beowulf Joint Venture was revealed on November 15, 2021, when Marathon filed a quarterly report on a Form 10-Q, reporting its financial and operating results for the quarter ended September 30, 2021. In the “Legal Proceedings” section of the Form 10-Q, Marathon disclosed that, “[d]uring the quarter ended September 30, 2021, [Marathon] and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility described in our Form 8-K dated October 13, 2020. We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law.”
Following this news, Marathon’s stock price fell $20.52 per share, or 27.03%, to close at $55.40 per share on November 15, 2021.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Beowulf Joint Venture, as it related to the Hardin Facility, implicated potential regulatory violations, including U.S. securities law violations; (2) as a result, the Beowulf Joint Venture subjected Marathon to a heightened risk of regulatory scrutiny; (3) the foregoing was reasonably likely to have a material negative impact on Marathon’s business and commercial prospects; and (4) as a result, Marathon’s public statements were materially false and misleading at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.