Investors are lining up to sue Argo Blockchain for fraud
By Bob Garcia
The debt-ridden company failed in its IPO and investors want answers
Argo, the blockchain embodied of different debts, is now being hit with a class action lawsuit for allegedly misleading investors during its initial public offering (IPO) two years ago. The lawsuit comes just days after a reported 98% drop in the Argo blockchain’s share price. At the time of the IPO, Argo had offered its shares at the price of $15 and now its price is $0.2. It is certainly a drop that would make any investor on Americas Cardroom take the same legal course.
The Argo blockchain had generated around $105 million at the time of its IPO. Argo had launched 7.5 million ADS tokens, each priced at $15. According to the lawsuit, early investors in Argo blockchain said the developers behind this platform kept important information hidden, such as its struggle with rising electricity rates.
“The Offering Documents were negligently prepared and, as a result, contained untrue statements of a material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation,” the filing said. Late last year, the firm unveiled the sale of its Dickens County, Texas-based mining facility for $65 million.
The mining company made it clear that it plans to use the proceeds from the sale to initiate and complete payments on outstanding loans. In the past seven months, the global crypto industry lost more than $200 billion due to market volatility, low-risk appetite among investors, hacks, and the collapse of promising projects. For now, the development of this lawsuit is scheduled for the coming weeks.