Bitfarms .(US:BITF) Prnewswireยท2025-05-12 21:58Core Viewpoint - A class action lawsuit has been filed against Bitfarms Ltd. for alleged deficiencies in internal controls over financial reporting, leading to misstatements in financial statements and a need for restatement [1][2][3]. Group 1: Allegations and Financial Reporting Issues - The complaint alleges that Bitfarms failed to disclose deficiencies in internal controls over financial reporting during the class period [2]. - Bitfarms incorrectly categorized proceeds from the sale of digital assets as cash flow from operating activities instead of cash flow from investing activities [2]. - The company overstated its ability to remediate material weaknesses in its internal controls related to the classification of 2021 Warrants [2]. - These errors resulted in misstatements in several previously issued financial statements, which are now likely to be restated [2]. Group 2: Impact of the Announcement - On December 9, 2024, Bitfarms announced that its consolidated financial statements for fiscal years 2022 and 2023 contained a material error regarding the classification of proceeds from digital asset sales [3]. - Following this announcement, Bitfarms' stock price fell by $0.13 per share, or 6.07%, closing at $2.01 per share on December 10, 2024 [3]. Group 3: Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file their papers with the court by July 8, 2025 [4]. - Shareholders can remain absent class members and still be eligible for recovery without participating in the case [4].