NEW YORK, May 27, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Marathon Digital Holdings Inc. ("Marathon" or the "Company") (NASDAQ: MARA) and reminds investors of the May 30, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Marathon stock or options between May 10, 2021 and February 28, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/MARA.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company overstated the efficacy of its disclosure controls and procedures and internal control over financial reporting; (2) as a result, the Company's revenues and cost of revenue were materially misstated during the Class Period; (3) the foregoing, once revealed, was reasonably likely to have a material negative impact on the Company's financial condition; and (4) as a result, the Company's public statements were materially false and misleading at all relevant times.
On February 28, 2023, Marathon issued a press release "announc[ing] . . . that it has cancelled its webcast and conference call for the fourth quarter and fiscal year 2022, initially scheduled for today, February 28, 2023, at 4:30 p.m. Eastern time, and will postpone the publication of its corresponding financial results." That same day, Marathon disclosed receipt of a letter from the U.S. Securities and Exchange Commission relating to accounting errors in the Company's previously issued financial statements. The Company advised investors that the "statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the previously issued unaudited condensed consolidated financial statements for the interim periods in 2022 and 2021 as contained in the Company's Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2021 and 2022, June 30, 2021 and 2022 and September 30, 2021 and 2022 . . . should no longer be relied upon" and will be restated.
Also on February 28, 2023, market analyst Seeking Alpha commented on Marathon's announcement, stating that "[t]he company said its method for calculating the impairment of digital assets, chiefly bitcoin , on a daily basis using a standard cutoff time wasn't in compliance with a requirement that calls for the intraday low price to be used," and, as such, "Marathon  now estimates that both its revenue and cost of revenue for the year ended Dec. 31, 2021 were understated. Revenue [. . .], energy, hosting and other, are expected to increase in the restated 2021 numbers."
On this news, Marathon's stock price fell $0.59 per share, or 8.31%, to close at $6.51 per share on March 1, 2023.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Marathon's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SOURCE Faruqi & Faruqi, LLP