Core Viewpoint - Bitfarms Ltd. is facing a class action lawsuit due to allegations of misleading financial reporting and inadequate internal controls, which have led to the misclassification of cash flows and potential restatements of financial statements [3][4]. Group 1: Class Action Details - The class action represents investors who purchased Bitfarms securities between March 21, 2023, and December 9, 2024, with a deadline for filing a lead plaintiff motion set for July 8, 2025 [1]. - The lawsuit claims that Bitfarms made false statements and failed to disclose significant issues regarding its financial reporting practices [3]. Group 2: Allegations Against Bitfarms - Allegations include inadequate internal controls over financial reporting, misclassification of proceeds from digital asset sales, and overstating the company's ability to address material weaknesses in internal controls [3]. - Specifically, Bitfarms misclassified cash flows from digital asset sales as operating activities instead of investing activities, leading to inaccuracies in previously issued financial statements [3][4]. - On December 9, 2024, Bitfarms announced that its financial statements for fiscal years 2022 and 2023 contained material errors and would require restatement due to the misclassification of cash flows [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Bitfarms Ltd. regarding a class action lawsuit due to alleged misleading financial statements and internal control deficiencies [1][2]. Group 1: Allegations Against Bitfarms Ltd. - The complaint alleges that Bitfarms maintained deficient internal controls over financial reporting [1]. - It is claimed that the company incorrectly categorized proceeds from the sale of digital assets as cash flow from operating activities instead of investing activities [1]. - The company allegedly overstated its ability to remediate material weaknesses in its internal controls related to the classification of the 2021 Warrants [1]. - These errors reportedly caused Bitfarms to misstate various items in previously issued financial statements, which may need to be restated [1]. - As a result, the company's public statements were materially false and misleading throughout the relevant period [1]. Group 2: Class Action Details - The class period for the lawsuit is from March 21, 2023, to December 9, 2024 [1]. - Shareholders are encouraged to register for the class action by July 8, 2025, to participate in potential recovery [2]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's status [2]. Group 3: About the Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [3].