Applied Digital Corp. Faces Securities Lawsuit for Allegedly False Statements and Overstated Profits
New York, September 30, 2023 (GLOBE NEWSWIRE) – Applied Digital Corp. (APLD) is currently facing a securities lawsuit for alleged false statements and overstated profits. Rosen Law Firm, a global investor rights law firm, has reminded purchasers of Applied Digital securities between April 13, 2022, and July 26, 2023, about the upcoming October 11, 2023 lead plaintiff deadline.
Investors who bought Applied Digital securities during this period may be eligible for compensation through a contingency fee arrangement without having to pay any out-of-pocket fees or costs. To join the Applied Digital class action, individuals can visit the Rosen Law Firm’s website or contact Phillip Kim, Esq. toll-free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com.
It’s important to note that a class action lawsuit has already been filed, and individuals interested in serving as the lead plaintiff need to take action before the October 11, 2023 deadline. The lead plaintiff in this case will represent other class members in directing the litigation.
The Rosen Law Firm encourages investors to choose qualified counsel with a proven track record of success in leadership roles. They warn against firms that lack experience, resources, or meaningful peer recognition and may simply act as middlemen referring clients to other law firms. With a focus on securities class actions and shareholder derivative litigation, the Rosen Law Firm represents investors worldwide. In fact, they achieved the largest-ever securities class action settlement against a Chinese company and were ranked No. 1 for securities class action settlements in 2017.
According to the lawsuit, Applied Digital Corp. and its defendants allegedly made false and misleading statements during the Class Period. The suit claims that the company overstated the profitability of its datacenter hosting business and its ability to successfully transition into a low-cost artificial intelligence (AI) cloud services provider. Additionally, the lawsuit alleges that Applied Digital’s board of directors did not comply with NASDAQ listing rules regarding independence, and the company failed to maintain proper corporate governance standards. These alleged misrepresentations and failures could potentially result in significant financial and reputational harm to the company. When the truth about these matters came to light, investors supposedly suffered damages as a result.
It’s important to mention that no class has been certified yet, and until a class is certified, individuals are not represented by counsel unless they retain one. Investors have the option to select their own counsel or remain as absent class members without taking any action at this time. Serving as the lead plaintiff is not a requirement to share in any potential future recovery as an investor.
The Applied Digital Corp. securities lawsuit serves as a reminder of the importance of transparency and accurate reporting within the business world. Investors must be aware of potential misrepresentations and false statements that could impact their investments. The outcome of this case will not only determine the potential compensation for affected investors but will also shed light on corporate governance standards and the accuracy of financial reporting.
For more information and updates on the Applied Digital class action lawsuit, investors can follow the Rosen Law Firm on LinkedIn, Twitter, or Facebook. The Rosen Law Firm has a dedicated team of attorneys experienced in handling securities class actions and has recovered hundreds of millions of dollars for investors in previous cases. Investors should seek professional legal advice and stay informed about their rights and options regarding this lawsuit.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Investors should consult with their own legal counsel and conduct thorough due diligence before making any investment decisions.
