Bitfarms hit with class action lawsuit for failing to disclose internal control deficiencies

On May 11th, according to Globenewswire, Nasdaq-listed mining company Bitfarms and some of its executives are facing a collective lawsuit, which has been filed by the law firm Pomerantz in the Eastern District of New York. In March 2024, the company discovered significant deficiencies in its internal financial reporting controls, which were related to the classification of its warrants in 2021. Bitfarms has stated that it is taking remedial measures and plans to complete the remediation plan by 2024, indicating that Bitfarms made significant false and misleading statements about its business, operations, and prospects, leading to a drop in stock price at the end of last year, potentially violating U.S. securities laws.