SAN DIEGO--(BUSINESS WIRE)--The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Marathon Digital Holdings, Inc. (NASDAQ: MARA) common stock between May 10, 2021 and February 28, 2023, for violations of the Securities Exchange Act of 1934. Marathon operates as a digital asset technology company that mines digital assets with a focus on the blockchain ecosystem and the generation of digital assets in the United States.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Marathon. Shareholders who want to act as lead plaintiff for the class must file their papers by May 30, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Marathon Digital Holdings, Inc. (MARA) Must Restate its Financial Statements for Periods in 2021 and 2022
According to the complaint, defendants failed to disclose that the Company overstated the efficacy of its disclosure controls and procedures and internal control over financial reporting and as a result, Marathon's revenues and cost of revenue were materially misstated during the class period.
On February 28, 2023, Marathon cancelled its webcast and conference call for the fourth quarter and fiscal year 2022, and postponed the publication of its corresponding financial results. Marathon also disclosed receipt of a letter from the SEC relating to accounting errors in the Company’s previously issued financial statements. The Company advised investors that the “statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the previously issued unaudited condensed consolidated financial statements for the interim periods in 2022 and 2021 as contained in the Company’s Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2021 and 2022, June 30, 2021 and 2022 and September 30, 2021 and 2022 . . . should no longer be relied upon” and will be restated.
The same day, Seeking Alpha commented on Marathon’s announcement, stating that “[t]he company said its method for calculating the impairment of digital assets, chiefly bitcoin , on a daily basis using a standard cutoff time wasn't in compliance with a requirement that calls for the intraday low price to be used,” and, as such, “Marathon  now estimates that both its revenue and cost of revenue for the year ended Dec. 31, 2021 were understated. Revenue [. . .], energy, hosting and other, are expected to increase in the restated 2021 numbers.”
On this news, Marathon’s stock price fell $0.59 per share, or 8.31%, to close at $6.51 per share on March 1, 2023.
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