#USA #San Diego #Class Action #Robbins LLP #Bitfarms Ltd

Class Action Lawsuit Filed Against Bitfarms Ltd.

On May 12, 2025, Robbins LLP announced a significant legal development affecting shareholders of Bitfarms Ltd. (NASDAQ: BITF). A class action lawsuit has been filed on behalf of all individuals and entities that acquired Bitfarms securities from March 21, 2023, to December 9, 2024. This legal action is especially critical as Bitfarms operates integrated Bitcoin (BTC) data centers across various regions, including Canada, the US, Paraguay, and Argentina.

Allegations Against Bitfarms Ltd.

The lawsuit focuses on allegations related to deficiencies in Bitfarms' internal controls over their financial reporting. Specifically, the complaint asserts that:

1. Failure to Disclose Issues: The defendants are accused of not revealing that Bitfarms had significant internal control weaknesses regarding financial reporting.

2. Misclassification of Cash Flows: It is alleged that the company incorrectly categorized proceeds from the sales of digital assets as cash flow from operating activities rather than from investing activities.

3. Overstating Remediation: The company allegedly overstated its success in addressing the material weaknesses related to its financial reporting, particularly concerning the classification of 2021 Warrants.

4. Inaccurate Financial Statements: These inaccuracies led to the misstatement of several items in Bitfarms’ previously issued financial statements, which are now suspected to require restatement.

The tipping point appeared to be the press release issued on December 9, 2024, in which Bitfarms acknowledged that its consolidated financial statements for the fiscal years 2022 and 2023 contained significant errors, particularly regarding cash flow classifications. This news precipitated a sharp decline in Bitfarms' stock price, showcasing the serious impact of these legal hurdles on shareholder trust.

What This Means for Shareholders

Shareholders have important options and deadlines approaching. Those wishing to be lead plaintiffs in this class action must file their papers by July 8, 2025. Lead plaintiffs serve as representatives for other shareholders, guiding the litigation process, although one does not need to serve in this capacity to potentially recover losses.

Robbins LLP operates on a contingency fee basis, meaning shareholders involved in the class action will not incur any fees unless their case yields a favorable outcome.

About Robbins LLP

Founded in 2002, Robbins LLP is a well-recognized leader in litigation focused on shareholder rights. The firm dedicates itself to assisting investors in recovering losses, improving corporate governance, and holding company executives accountable for their actions.

For those affected by the Bitfarms situation, signing up for updates through services like Stock Watch ensures they remain informed on developments in the case. As with any litigation, past results do not guarantee future outcomes, but Robbins LLP’s track record speaks to their commitment towards investor rights and protections.

In conclusion, the legal landscape surrounding Bitfarms presents serious challenges for its shareholders, but the initiation of this lawsuit also opens avenues for potential redress. Stakeholders should remain vigilant and informed as they navigate these unfolding legal battles.