US court rejects class action lawsuit against mining company Riot Blockchain

The District Court of New Jersey refused to continue the trial against the mining company RiotBlockchain, which investors accused of manipulating stock prices.

A company from Colorado was previously known asBioptix, Inc. and specialized in biotechnology. In October 2017, when the cryptocurrency market was booming, it changed its name to Riot Blockchain, Inc. and announced a shift in focus towards distributed technologies and Bitcoin mining. Soon, the price of its shares rose sharply, after which it also sagged significantly.

Dissatisfied with such a development of events, investorsimmediately filed three class action lawsuits in Florida, Colorado and New Jersey with claims for damages. Allegedly, “false information designed to hide the complete lack of experience and skills [of the company’s employees] in the blockchain sphere” led to losses. The company was also accused of violating securities laws, manipulating stock prices.

In addition, the company became the focus of attention of the US Securities and Exchange Commission (SEC).

Now at least one class action lawsuit againstRiot Blockchain discontinued. Judge Freda Wilson’s decision earlier this week said plaintiffs were unable to provide sufficient evidence that Riot Blockchain’s press releases and other public statements contained false or misleading information.

New Jersey District Court Verdict Practicallycoincided with the statement of Riot Blockchain on the purchase of 1000 devices of the new generation Bitmain S19 (110 TH) Pro from the manufacturer of mining equipment company BitmainTech. The transaction value amounted to $ 2.4 million.

In March, company representatives warned that the COVID-19 coronavirus pandemic poses a threat to the mining industry in the United States.