Applied Digital Corp. Investors Alert: Deadline Approaching for Lead Plaintiff Motion in Class Action Lawsuit
Los Angeles, Oct. 09, 2023 (GLOBE NEWSWIRE) – Glancy Prongay & Murray LLP (GPM) is reminding investors of the upcoming deadline to file a lead plaintiff motion in the class action lawsuit against Applied Digital Corporation (Applied Digital or the Company). Investors who purchased or acquired Applied Digital Corporation securities between April 13, 2022, and July 26, 2023, are encouraged to take action before the October 11, 2023 deadline.
The class action lawsuit alleges that Applied Digital and its executives made false and misleading statements throughout the Class Period, failing to disclose material adverse facts about the Company’s business and operations. It is alleged that Applied Digital overstated the profitability of its datacenter hosting business and its ability to transition into a low-cost AI Cloud services provider. The lawsuit also claims that the Company’s Board of Directors was not independent and that Applied Digital failed to maintain proper corporate governance standards.
The allegations against Applied Digital were first brought to light on July 6, 2023, when The Bear Cave and Wolfpack Research published reports questioning the Company’s claims and highlighting concerns about related party transactions, governance, and potential conflicts of interest. Applied Digital’s stock price fell significantly following the reports, causing financial harm to investors.
Further damage was done on July 26, 2023, when The Friendly Bear published a report suggesting that Applied Digital’s board did not meet the independence requirements under Nasdaq rules. The report also raised concerns about conflicts of interest in the Company’s investigation into sexual harassment claims made against its CEO, which could potentially lead to legal repercussions.
Investors who suffered losses or are interested in pursuing claims against Applied Digital under the federal securities laws are urged to submit their contact information at www.glancylaw.com/cases/Applied-Digital-Corporation/ or reach out to Charles H. Linehan of GPM at 310-201-9150 or shareholders@glancylaw.com.
It is important for investors who purchased or acquired Applied Digital securities during the Class Period to take action before the October 11, 2023 deadline if they wish to request appointment as lead plaintiff in the class action lawsuit. Retaining counsel or choosing to remain an absent member of the class action are also options available to investors.
This article provides a summary of the key information from the original press release, offering investors an opportunity to understand the ongoing developments in the class action lawsuit against Applied Digital Corporation. Investors should consult professional legal advice and consider their individual circumstances when deciding whether to participate in the lead plaintiff motion or take any further action.
Disclaimer: This press release may be considered Attorney Advertising in some jurisdictions under applicable law and ethical rules.
