Robbins LLP Reminds Investors of Class Action Lawsuit against Applied Digital Corporation (NASDAQ: APLD)
SAN DIEGO, Aug. 28, 2023 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Applied Digital Corporation (NASDAQ: APLD) securities between April 13, 2022, and July 26, 2023. Applied Digital, formerly known as Applied Blockchain, is a company that specializes in datacenters in North America and offers artificial intelligence (“AI”) cloud services, computing datacenter hosting, and crypto datacenter hosting services.
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About the Lawsuit: Allegations of Misleading Statements by Applied Digital Corporation
According to the filed complaint, during the class period, defendants failed to disclose several crucial facts. Firstly, they overstated the profitability of Applied Digital’s datacenter hosting business and its ability to successfully transition into a low-cost AI Cloud services provider. Secondly, Applied Digital’s Board of Directors was not independent under NASDAQ listing rules. Consequently, the efficacy of Applied Digital’s business model was exaggerated, and proper corporate governance standards were not upheld.
On July 6, 2023, market analysts Wolfpack Research and The Bear Cave released short reports on Applied Digital. These reports raised concerns about the viability of the Company’s business model, accusing Applied Digital of promoting fake AI products and puffery. Consequently, Applied Digital’s stock price fell 14.16% on July 6, 2023. Later, on July 26, 2023, The Friendly Bear published a short report stating that Applied Digital’s board did not meet the independence requirements under Nasdaq rules.
What’s Next: Join the Class Action against Applied Digital Corporation
Shareholders who were similarly affected by the alleged misleading statements by Applied Digital Corporation may be eligible to join the class action. To act as the lead plaintiff for the class, shareholders must file their motion by October 11, 2023. A lead plaintiff represents other class members and guides the litigation. Even if you choose not to participate in the case, you can still be eligible for a recovery as an absent class member. Click here for more information.
All representation is on a contingency fee basis, meaning shareholders do not have to pay any fees or expenses.
About Robbins LLP: Leading the Way in Securities Class Action Litigation
Not all law firms that issue releases on this matter actually litigate securities class actions. However, Robbins LLP specializes in shareholder rights litigation. With a strong track record in recovering losses, improving corporate governance structures, and holding executives accountable, Robbins LLP has been dedicated to helping shareholders since 2002. The firm has obtained over $1 billion for shareholders so far.
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Editor Notes
In the world of investments, it’s essential to have reliable information and take the necessary steps for protection. The class action lawsuit against Applied Digital Corporation is a reminder that investors should be vigilant and aware of potential misrepresentations by companies. Robbins LLP, as a trusted law firm, is dedicated to defending shareholder rights and bringing accountability to corporate practices. By participating in class actions, investors have the opportunity to recover their losses and improve corporate governance. Stay informed about relevant cases and protect your investments by staying connected with GPT News Room.
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