Levi & Korsinsky Initiates Class Action for Bitfarms Ltd. Shareholders

Background on the Lawsuit

In a significant legal move, Levi & Korsinsky, LLP has announced the filing of a class action securities lawsuit aimed at protecting the interests of shareholders in Bitfarms Ltd. (NASDAQ: BITF). This action is directed towards investors who suffered losses due to alleged securities fraud occurring between March 21, 2023, and December 9, 2024. The announcement comes amidst growing concerns over the company's internal financial controls and reporting accuracy.

Allegations Against Bitfarms

The complaint alleges that Bitfarms’ management concealed several critical issues that adversely affected its financial reporting. Key allegations include:
1. Internal Control Deficiencies: It is claimed that the company failed to maintain adequate internal controls over financial reporting, which is essential for transparency and reliability of financial statements.
2. Misclassification of Cash Flows: Bitfarms reportedly misrepresented proceeds from digital asset sales, inaccurately categorizing them as operating cash flows rather than investing cash flows. This misclassification can significantly distort financial assessments and investor decisions.
3. Weaknesses in Reporting Controls: The lawsuit suggests that Bitfarms exaggerated its capability to correct identified weaknesses regarding the reporting of the 2021 warrants, leading to material inaccuracies in its financial statements. These errors raised concerns about the integrity of the overall financial reporting framework.
4. Restatement of Financials: As a result of the aforementioned issues, it is anticipated that Bitfarms will need to restate previous financial statements, impacting investor confidence and the company's market value.
5. Deception in Public Disclosures: The allegations assert that Bitfarms’ public statements regarding its financial health were misleading, potentially influencing investor behavior during the specified timeframe.

Implications for Investors

If you are a shareholder who incurred losses during the relevant period, it’s imperative to act quickly. Levi & Korsinsky is urging affected investors to realize that they have until July 8, 2025, to seek the court's approval to become lead plaintiffs. Participation in this case does not necessitate serving as a lead plaintiff, thus broadening access for all impacted shareholders.

No Upfront Costs for Participants

Investors who qualify for the class action can participate without incurring personal expenses or fees. Levi & Korsinsky emphasizes that there are no out-of-pocket costs associated, making it easier for individuals to seek justice for their losses without financial strain.

Why Choose Levi & Korsinsky?

With over two decades of experience, Levi & Korsinsky has a proven track record of securing hundreds of millions for investors in similar situations. The firm specializes in complex securities litigation, supported by a dedicated team of over 70 professionals. Their recognition in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years further solidifies their reputation in the field.

Next Steps for Interested Shareholders

Affected shareholders may reach out to Levi & Korsinsky’s legal representatives, Joseph E. Levi, Esq. or Ed Korsinsky, Esq., via email or phone to learn more about their rights and to discuss the next steps for participation in the class action. The law firm's dedicated approach to shareholder rights positions it as a leader in protecting investor interests.

Contact Information:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
Email: [email protected]
Phone: (212) 363-7500