Bitcoin mining company Hut 8 agrees to pay $2.35 million to settle a class action lawsuit from investors, related to the disclosure controversy regarding its merger with U.S. Bitcoin Corp. in 2023

Bitcoin mining company Hut 8 has agreed to pay $2.35 million to settle a securities class action lawsuit filed by investors. The lawsuit alleges that Hut 8 made misleading disclosures regarding operational risks and potential issues related to the merger with U.S. Bitcoin Corp. in 2023.

The focus of the lawsuit involves power and network connectivity issues at the King Mountain Bitcoin mining project in Texas. Investors claim that Hut 8 exaggerated the merger benefits and did not adequately disclose the associated operational risks. According to the settlement agreement, Hut 8 does not admit to any wrongdoing or liability.

Documents show that the $2.35 million settlement amount represents approximately 19.6% of the plaintiffs' estimated maximum recoverable losses of $12.08 million. The settlement plan is still subject to final court approval.

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