Cohen Milstein Investigates Applied Digital Corporation for Violations of Securities Exchange Act
- Applied Digital Corporation is being investigated for potential false statements and misleading information, which could lead to legal consequences. The class action lawsuit may result in negative publicity and damage to the company's reputation. Investors should be cautious about the stock's performance during this investigation.
- The investigation and class action lawsuit against Applied Digital Corporation could negatively impact the company's stock price. If the allegations are proven true, it could lead to financial penalties and loss of investor confidence.
WASHINGTON, DC / ACCESSWIRE / August 16, 2023 / Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Applied Digital Corporation ("Applied Digital" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder.
A class action lawsuit was filed in the U.S. District Court for the Northern District of Texas by another law firm on behalf of purchasers of the common stock of Applied Digital Corporation (NASDAQ:APLD) between April 13, 2022 and July 26, 2023, inclusive (the "Class Period").
The complaint alleges that throughout the Class Period, Applied Digital and certain of its officers and directors ("Defendants") made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants 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; and (iii) Applied Digital had overstated the efficacy of its business model and failed to maintain proper corporate governance standards.
The Class Period begins on April 13, 2022, the day Applied Digital conducted its initial public offering ("IPO") on Nasdaq Global Select Market ("NASDAQ"), issuing 8 million shares of common stock priced at
Cohen Milstein encourages all investors who purchased Applied Digital's common stock between April 13, 2022 and July 26, 2023, or former employees with information concerning this matter to contact the firm.
If you are a Applied Digital shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. Steven J. Toll is admitted in the District of Columbia and Virginia.
If you wish to serve as lead plaintiff, you must move the Court no later than October 11, 2023 to request an appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following people below or contact us on the Applied Digital Corporation Investigation page on our website:
Steven J. Toll, Esq. or Samuel Bloom
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Fifth Floor
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email:stoll@cohenmilstein.com; sbloom@cohenmilstein.com
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SOURCE: Cohen Milstein Sellers & Toll PLLC
View source version on accesswire.com:
https://www.accesswire.com/774579/Cohen-Milstein-Investigates-Applied-Digital-Corporation-for-Violations-of-Securities-Exchange-Act
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