Investor Files a Securities Lawsuit Against Bitcoin Mining Company, Canaan

News / 07.03.2020

Bitcoin mining rig manufacturer, Canaan is being sued by an investor for allegedly breaking U.S. securities laws during its IPO.

Canaan filed its Initial Public Offering with the SEC last November and targeted to raise $400 million. However, the China-based rig manufacturing company managed to raise only $90 million after listing on the Nasdaq Global Marketplace.

Meanwhile, an investor in the company called Phillippe Lemieux has filed a class-action lawsuit that claims that Canaan violated the Securities Act of 1933. According to Lemieux, Canaan misled investors and the Securities and Exchange Commission about the company’s financial health and operations status in its IPO filing to the SEC.

The plaintiff further alleged that the company quietly removed some suspicious distributors from its website prior to the IPO. In addition, he also claimed that some of Canaan’s stated clients are likely not to be in the Bitcoin mining industry.

The lawsuit was filed at the United States District Court for the District of Oregon and the plaintiff is demanding a trial by jury. Lemieux, together with other class members are seeking to be compensated for the damages.

The litigation representing the plaintiff informed that the lawsuit is filed within 1 year after the discovery of the false statement made by Canaan and therefore the case is timely. The firm is encouraging all investors who participated in the company’s IPO, and have suffered a significant loss, to contact them for assistance.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.