Bitfarms .(US:BITF) GlobeNewswire News Roomยท2025-05-19 18:47Core 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 deficient internal controls over financial reporting, which resulted in misclassification of cash flows from digital asset sales [2]. - Bitfarms incorrectly categorized proceeds from digital asset sales as cash flow from operating activities instead of investing activities, leading to inaccuracies in financial statements [2]. - The company also overstated its ability to remediate material weaknesses in internal controls related to the classification of 2021 Warrants, causing further misstatements [2]. Group 2: Impact of the Allegations - On December 9, 2024, Bitfarms announced that its consolidated financial statements for fiscal years 2022 and 2023 contained a material error and would need to be restated, specifically regarding the classification of proceeds from digital asset sales [3]. - Following the 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 participating as lead plaintiffs in the class action must file their papers with the court by July 8, 2025 [4]. - Shareholders do not need to participate in the case to be eligible for recovery and can remain absent class members if they choose [4].