Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 28, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Applied Digital Corporation ("Applied Digital" or the "Company") (NASDAQ: APLD) investors that a lawsuit filed on behalf of investors that purchased Applied Digital securities between April 13, 2022 and July 26, 2023, both dates inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Applied Digital, formerly known as Applied Blockchain, operates datacenters in North America and offers artificial intelligence (AI) cloud services, computing datacenter hosting, and crypto datacenter hosting. The company went public in April 2022, issuing 8 million shares of common stock at $5.00 per share through an IPO. The IPO was underwritten by B. Riley Securities, a subsidiary of B. Riley Financial. Despite close connections between Applied Digital's executives and B. Riley entities, the company assured compliance with NASDAQ listing rules. In May 2023, Applied Digital announced a cloud service for AI applications and entered into a loan agreement with B. Riley entities. Market analysts questioned the viability of the business model, leading to a series of short reports that highlighted potential issues, including inflated profitability claims, lack of board independence, and conflicts of interest. These reports led to stock price drops in July 2023, reflecting concerns about the company's operations, governance, and financial well-being.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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