If you suffered losses in Applied Digital stock contact Applied Digital stock loss lawyer Timothy L. Miles about an Applied Digital class action lawsuit
The Applied Digital class action lawsuit seeks to represent purchasers or acquirers of Applied Digital Corporation (NASDAQ: APLD) securities between April 13, 2022 and July 26, 2023, inclusive (the “Class Period”). Captioned McConnell v. Applied Digital Corporation, No. 23-cv-01805 (N.D. Tex.), the Applied Digital class action lawsuit charges Applied Digital and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered losses in Applied Digital class action lawsuit and wish to serve as lead plaintiff in the class action against Applied Digital, or just have general questions, please contact Applied Digital class action lawsuit Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form. Lead plaintiff motions for the Applied Digital class action lawsuit must be filed with the court no later than October 11, 2023. Read on for answers to six frequently asked questions in the Applied Digital class actionlawsuit. WHAT ARE THE ALLEGATIONS IN THE APPLIED DIGITAL ACTION LAWSUIT?
Applied Digital designs, develops, and operates datacenters in North America, and provides artificial intelligence (“AI”) cloud services, computing datacenter hosting, and crypto datacenter hosting services. In April 2022, Applied Digital conducted its initial public offering (“IPO”), raising approximately $40 million. The IPO offering documents described several close connections between Applied Digital and B. Riley Securities (the primary IPO underwriter), including that in August 2021, Applied Digital’s CEO and defendant Wesley Cummins sold a majority interest in a registered investment adviser controlled by Cummins to B. Riley Financial, and thereafter became President of B. Riley Asset Management.
The Applied Digital class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Applied Digital had overstated the profitability of its datacenter hosting business and its ability to successfully transition into a low-cost AI cloud services provider; (ii) Applied Digital’s Board of Directors was not independent within the meaning of NASDAQ listing rules; (iii) accordingly, Applied Digital had overstated the efficacy of its business model and failed to maintain proper corporate governance standards; and (iv) the above, once revealed, was likely to subject Applied Digital to significant financial and/or reputational harm. On July 6, 2023, market analysts Wolfpack Research and The Bear Cave published short reports on Applied Digital. The Wolfpack report raised questions about the viability of Applied Digital’s business model, stating that Applied Digital “pumped up its stock in May by claiming to pivot from a floundering business hosting bitcoin miners, to become a low-cost AI Cloud service provider,” and “[t]he explosion of interest in AI after the emergence of Chat GPT has predictably attracted the worst promoters . . . to peddle fake AI wares to credulous investors, and our analysis indicates that [Applied Digital] is one of these grifters because it is not an AI company.” The Bear Cave report detailed Applied Digital’s problematic corporate history, alleging that “Applied Digital relies on puffery over substance and is a perfect case study on our market’s bizarre underbelly of reverse mergers, microcaps, and shell companies.” On this news, the price of Applied Digital stock fell more than 14%. Then, on July 26, 2023, The Friendly Bear published a short report on Applied Digital and expressed the view that B. Riley “is controlling managerial decisions at Applied Digital to the detriment of Applied Digital shareholders” and that Applied Digital’s Board of Directors does not “meet[] the independence requirements under Nasdaq rules and . . . is essentially controlled by B. Riley.” The Friendly Bear report also alleged that clear conflicts of interest undermined Applied Digital’s purported investigation into sexual harassment claims made against defendant Cummins the previous month, noting that the manner in which the claims were summarily dismissed by Applied Digital’s Audit Committee could subject Applied Digital to “significant legal blowback.” On this news, the price of Applied Digital stock fell 6% over two trading sessions, further damaging investors who suffered losses in Applied Digital stock. IF I SUFFERED LOSSES IN APPLIED DIGITAL STOCK, WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE APPLIED DIGITAL CLASS ACTION LAWSUIT?
Serving as a Lead Plaintiff in the Applied Digital class action lawsuit has several advantages and important benefits including:
Thus, there are numerous benefits and other advantages to serving as lead plaintiff in the Applied Digital class action lawsuit if you suffered losses in Applied Digital class action lawsuit. CAN I BE APPOINTED LEAD PLAINTIFF IN THE APPLIED DIGITAL CLASS ACTION LAWSUIT IF I PURCHASED SHARES OUTSIDE OF THE CLASS PERIOD?
No. Even if you suffered losses in Applied Digital, if you purchased securities outside of the Class period, you will not be able to participate in the Applied Digital class action lawsuit.
WILL THE LEAD PLAINTIFFS GET MORE MONEY THAN CLASS MEMBERS IF THE APPLIED DIGITAL CLASS ACTION LAWSUIT?
No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the class action against Applied Digital. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class. However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff that directly relates to the representation of the class in the Applied Digital class action lawsuit on behalf of investors who suffered losses in Applied Digital stock.
HOW WAS THE CLASS PERIOD DETERMINED IN THE APPLIED DIGITAL CLASS ACTION LAWSUIT?
In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.
In order to be a part of the class in the Applied Digital class action lawsuit you must have suffered losses in Applied Digital stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against Applied Digital. HOW CAN AN APPLIED DIGITAL STOCK LOSS LAWYER HELP ME IF I SUFFERED LOSSES IN APPLIED DIGITAL STOCK?
An Applied Digital stock loss Lawyer is well-versed in the complex laws that govern the securities industry and litigation and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer. In most cases, they have lost money due to mistakes, incompetence, or fraud by an investment professional.
While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discover every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct. Look for a securities lawyer with experience, high ethical standards, verifiable credentials, and a trustworthy reputation among his peers and the judiciary, as well as testimonials from previous clients and awards and recognitions. Contact an Applied Digital Stock Loss Lawyer today if you suffered losses in Applied Digital stock about the Applied Digital class action lawsuit who will fight to recover your suffered losses in Applied Digital stock. CONTACT AN APPLIED DIGITAL STOCK LOSS LAWYER TODAY IF YOU SUFFERED IN LOSSES IN APPLIED DIGITAL STOCK ABOUT AN APPLIED DIGITAL CLASS ACTION LOSSES LAWSUIT
If you suffered losses in Applied Digital stock, contact Applied Digital stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against Applied Digital. Call today and see what an Applied Digital stock loss lawyer can do for you if you suffered losses in Applied Digital stock.
Applied Digital stock loss lawyer Timothy L. MilesNashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,Class Action: Class Action: Top 9National Trial Lawyers, National Trial Lawyers Association (2023), a superb ratedattorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more. Please visit our website or call for free anytime. Comments are closed.
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