A class action lawsuit has been filed against Bitfarms, a Nasdaq-listed mining company, and certain executives by law firm Pomerantz in the U.S. District Court for the Eastern District of New York. The lawsuit stems from Bitfarms’ March 2024 financial report that revealed significant deficiencies in internal controls, specifically relating to the classification of warrants issued in 2021. The company stated its remediation plan is expected to be completed by 2024. These issues allegedly resulted in misleading statements about the company’s business, operations, and prospects, which led to a drop in stock price at year-end. The lawsuit asserts violations of U.S. securities laws.