DENVER, CO – April 5, 2018 – Berens Law LLC today announced that a class action lawsuit has been filed in the United States District Court for the District of Colorado on behalf of a class consisting of investors who purchased or otherwise acquired Riot’s securities (RIOT) between October 4, 2017 through February 15, 2018, both dates inclusive (the “Class Period”).
What actions may I take at this time? If you purchased or acquired shares during the Class Period and wish to serve as a lead plaintiff, you must request appointment no later than April 18, 2018. A “lead plaintiff” works with counsel to direct the litigation and participates in important decisions, including the amount of compensation to accept in settlement of the class action. Members of the putative class may seek appointment through counsel of their choice, or may choose to do nothing and remain absent class members.
If you would like to discuss this action, the lead plaintiff process, or have any questions concerning this notice, please contact Jeffrey A. Berens, Esq. at (800) 287-9272 or via email firstname.lastname@example.org.
What are the allegations in the complaint? The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Riot lacked a meaningful business plan with respect to the cryptocurrency business and had only minimal investments in cryptocurrency products; (ii) the Company changed its name to Riot Blockchain, Inc. as part of a scheme to capitalize on public interest in cryptocurrency products, thereby driving up the Company’s stock price and enriching inside shareholders; (iii) Riot never intended to hold its Annual General Meetings scheduled for December 28, 2017, and February 1, 2018; and (iv) as a result of the foregoing, Riot shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On February 16, 2018, CNBC published a report based on an investigation of Riot. The CNBC report noted that Riot's “stock shot from $8 a share to more than $40, as investors wanted to cash in on the craze of all things crypto,” but that Riot did not appear to have meaningful involvement in the cryptocurrency business: “Until October, its name was Bioptix, and it was known for having a veterinary products patent and developing new ways to test for disease.” In addition, CNBC reported numerous “red flags” in Riot's SEC filings: “annual meetings that are postponed at the last minute, insider selling soon after the name change, dilutive issuances on favorable terms to large investors, SEC filings that are often Byzantine and, just this week, evidence that a major shareholder was getting out while everyone else was getting in.”
Based upon the foregoing, the complaint charges defendants with violations of the Securities Exchange Act of 1934.
About Berens Law LLC. Berens Law LLC represents investors in securities class action and shareholder derivative lawsuits, and over the years has recovered hundreds of millions of dollars for clients. For more information, please go to: www.jberenslaw.com.
Jeffrey A. Berens, Esq.
Berens Law LLC
2373 Central Park Boulevard
Denver, CO 80238
Tel: (800) 287-9272