Odaily Planet Daily News Law firm Pomerantz LLP announced that it has filed a class action against the encryption mining company Applied Digital Corporation and some managers.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose:
(i) Applied Digital exaggerated the profitability of its data center colocation business and its ability to successfully transform itself into a low-cost artificial intelligence cloud service provider;
(ii) Applied Digital's board of directors does not have independence as defined by the Nasdaq listing rules;
(iii) Applied Digital therefore exaggerated the effectiveness of its business model and failed to maintain appropriate standards of corporate governance;
(iv) disclosure of the foregoing could result in significant financial and/or reputational harm to the Company.
According to reports, Applied Digital, originally known as Applied Blockchain, designs, develops and operates data centers in North America, and provides artificial intelligence cloud services, computing data center hosting, and encrypted data center hosting services.
In April 2022, Applied Digital conducted an IPO offering 8 million shares of common stock at $5.00 each for gross proceeds of approximately $40 million. The lead underwriter for the IPO is B. Riley Securities, Inc., an investment bank and subsidiary of B. Riley financial, Inc., a diversified financial services platform. Applied Digital's securities will begin trading on the Nasdaq Global Select Market on April 13, 2022, according to offering documents related to the IPO. (Globe Newswire)