Investor Alert: Shareholder Files Class Action Against Applied Digital Corporation for Misleading Investors
SAN DIEGO, Sept. 20, 2023 (GLOBE NEWSWIRE) —
Robbins LLP reminds investors that a shareholder has filed a class action on behalf of those who purchased or acquired Applied Digital Corporation (APLD) securities between April 13, 2022, and July 26, 2023. Applied Digital, formerly known as Applied Blockchain, operates datacenters in North America and provides AI cloud services, computing datacenter hosting, and crypto datacenter hosting services.
For more information, you can submit a form, email Aaron Dumas, Jr., or call us at (800) 350-6003.
Understanding the Case: Applied Digital’s Misleading Business Model
According to the complaint, defendants during the class period failed to disclose certain information, including the overstatement of Applied Digital’s datacenter hosting business’s profitability and its ability to transition into a low-cost AI cloud services provider. It was also alleged that Applied Digital’s Board of Directors did not meet the independence criteria set by NASDAQ listing rules, and as a result, the efficacy of its business model was overstated, along with a failure to maintain adequate corporate governance standards.
On July 6, 2023, market analysts released reports casting doubt on Applied Digital’s business model. The reports raised concerns about the company’s claims of becoming a low-cost AI cloud service provider and exposed its reliance on puffery rather than substance. These revelations caused a significant drop in Applied Digital’s stock price.
Legal Actions and Eligibility
As a shareholder who purchased or acquired Applied Digital Corporation securities within the specified period, you may be eligible to participate in the class action against the company. Shareholders interested in becoming a lead plaintiff for the class must file their motion by October 11, 2023. Being a lead plaintiff means representing other class members in directing the litigation. Remember, you can still be eligible for a recovery even if you do not actively participate in the case.
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All legal representation regarding this matter is on a contingency fee basis, meaning shareholders will not pay any fees or expenses.
About Robbins LLP: Dedicated Shareholder Rights Litigation
Unlike other law firms that issue releases without actively litigating securities class actions, Robbins LLP specializes in shareholder rights litigation. Since 2002, the attorneys and staff at Robbins LLP have been committed to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing. Over the years, Robbins LLP has successfully obtained over $1 billion for shareholders.
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Attorney Advertising. Past results do not guarantee a similar outcome.
Editor Notes: A Perspective on Investor Protection
Investor protection is a significant aspect of a fair and transparent market. Shareholders deserve accurate information regarding a company’s financial performance and business model. Cases like the one against Applied Digital Corporation highlight the importance of holding companies accountable for misleading investors.
As an investor, it is crucial to stay informed, exercise your rights, and consider joining class actions when appropriate. By actively participating in legal proceedings, shareholders can contribute to the pursuit of justice and promote corporate transparency.
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