Lawsuit Filed Against Applied Digital Corporation for False Statements
A class action lawsuit has been filed against Applied Digital Corporation (Applied Digital or the Company) by Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm. The lawsuit was filed in the United States District Court for the Northern District of Texas on behalf of all individuals and entities who purchased or acquired Applied Digital securities between April 13, 2022, and July 26, 2023.
Investors have until October 11, 2023, to apply to the Court to be appointed as lead plaintiff in the lawsuit. The lawsuit alleges that Applied Digital made false and misleading statements about its business, operations, and compliance policies during the Class Period.
According to the lawsuit, Applied Digital overstated the profitability of its datacenter hosting business and its ability to transition into a low-cost AI Cloud services provider. It is also alleged that the Company’s Board of Directors was not independent as per NASDAQ listing rules. These false and misleading statements, along with the failure to maintain proper corporate governance standards, led to the overestimation of Applied Digital’s business model.
The lawsuit further claims that once the truth behind Applied Digital’s misrepresentation was revealed, the Company would likely face significant financial and reputational harm. The class action lawsuit seeks to hold the Company accountable for its materially false and misleading public statements throughout the relevant times.
If you are an investor who purchased or acquired Applied Digital shares and suffered a loss, Bragar Eagel & Squire, P.C. encourages you to contact them. They are interested in long-term stockholders, individuals with information about the claims, and anyone with questions or concerns regarding the lawsuit.
Bragar Eagel & Squire, P.C. is a leading law firm with offices in New York, California, and South Carolina. The firm specializes in representing individual and institutional investors in a range of complex litigation, including commercial, securities, and derivative cases. They have successfully represented clients in state and federal courts across the country.
This announcement serves as a reminder that prior results do not guarantee similar outcomes in legal cases. However, it provides investors who suffered losses an opportunity to seek justice and potential compensation for their damages. If you are affected by this case, do not hesitate to reach out to Bragar Eagel & Squire, P.C. for further information.
As this case progresses, it will be interesting to see how Applied Digital Corporation responds to the allegations and the impact it may have on the Company’s financial standing and reputation.
