SHAREHOLDER ALERT: Levi & Korsinsky, LLP Announces Court's Decision Upholding the Complaint Against Stronghold Digital Mining Inc.

NEW YORK, Sept. 01, 2023 (GLOBE NEWSWIRE) -- Levi & Korsinsky notifies shareholders of Stronghold Digital Mining Inc.’s ( SDIG) that, on August 10, 2023, the Honorable Ronnie Abrams, U.S. District Judge for the Southern District of New York, denied Defendants’ motion to dismiss the complaint as to Plaintiffs’ claims under Sections 11 and 15 of the Securities Act of 1933 and granted Defendants’ motion only as to their Section 12(a)(2) claim.

In upholding Plaintiffs’ complaint, the Court found that Plaintiffs had plausibly alleged the alleged misstatements in the Offering Materials were false when made and rejected Defendants’ argument that the Offering Materials provided sufficient cautionary warnings that their statements might later turn out to be false, finding that ‘“[b]ecause Defendants' statements were hypothetical’ and the warned-of risks were not, the cautionary statements ‘are not curative.”’ Further, in rejecting the defendants’ negative causation argument, the Court found that Plaintiffs “raise a plausible inference that ‘the misstatement or omission concealed something from the market that, when disclosed, negatively affected the value of the security.”’

For an analysis of the court’s decision, go to https://zlk.com/Blog/lk-attorneys-defeat-motions-to-dismiss-securities-act-claims-in-victory-for-ipo-investors.

For an analysis and updates on recent developments in securities class action litigation, visit https://zlk.com/lk-insights

WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com