NEW YORK--(BUSINESS WIRE)--Pomerantz LLP announces that a class action lawsuit has been filed against Riot Blockchain, Inc. f/k/a Bioptix, Inc. (“Riot” or the “Company”) (NASDAQ: RIOT) and certain of its officers. The class action, filed in United States District Court, for the District of Colorado, and Docketed under 18-cv-00440, is on behalf of a class consisting of investors who purchased or otherwise acquired Riot’s securities between October 4, 2017 through February 15, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Riot securities between October 4, 2017, and February 15, 2018, both dates inclusive, you have until April 18, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Riot Blockchain, Inc. purports to operate as a digital currency company. The Company represents that it focuses on buying cryptocurrency and blockchain businesses, as well as supporting blockchain technology companies. Founded in 2000, the Company was formerly known as Bioptix, Inc. (“Bioptix”) and changed its name to Riot Blockchain, Inc. in October 2017.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Riot lacked a meaningful business plan with respect to the cryptocurrency business and had only minimal investments in cryptocurrency products; (ii) the Company changed its name to Riot Blockchain, Inc. as part of a scheme to capitalize on public interest in cryptocurrency products, thereby driving up the Company’s stock price and enriching inside shareholders; (iii) Riot never intended to hold its Annual General Meetings scheduled for December 28, 2017, and February 1, 2018; and (iv) as a result of the foregoing, Riot shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On February 16, 2018, CNBC published a report based on an investigation of Riot. The CNBC report noted that Riot's “stock shot from $8 a share to more than $40, as investors wanted to cash in on the craze of all things crypto”, but that Riot did not appear to have meaningful involvement in the cryptocurrency business: “Until October, its name was Bioptix, and it was known for having a veterinary products patent and developing new ways to test for disease.” In addition, CNBC reported numerous “red flags” in Riot's SEC filings: “annual meetings that are postponed at the last minute, insider selling soon after the name change, dilutive issuances on favorable terms to large investors, SEC filings that are often Byzantine and, just this week, evidence that a major shareholder was getting out while everyone else was getting in.”
On this news, Riot’s share price fell $5.74, or over 33.37%, to close at $11.46 on February 16, 2018, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com