BITF Shareholder Alert: Robbins LLP Informs Investors of the Bitfarms Ltd. Class Action Lawsuit

The Allegations: Robbins LLP is Investigating Allegations that Bitfarms Ltd. (BITF) Maintained Deficient Internal Controls Over Financial Reporting

According to the complaint, during the class period, defendants failed to disclose that: (i) Bitfarms maintained deficient internal controls over financial reporting; (ii) as a result, the Company incorrectly categorized proceeds derived from the sale of digital assets as a cash flow from operating activities rather than as a cash flow from investing activities; (iii) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weakness in its internal controls over financial reporting related to its classification of the 2021 Warrants; (iv) the foregoing errors caused Bitfarms to misstate various items in several of the Company's previously issued financial statements; and (v) as a result, these financial statements were inaccurate and would likely need to be restated.

The complaint alleges that on December 9, 2024, Bitfarms issued a press release announcing that its consolidated financial statements for the fiscal years 2022 and 2023 contained a material error related to the classification of proceeds from digital asset sales and would need to be restated. Specifically, the Company revealed that "Bitfarms previously categorized proceeds derived from the sale of digital assets as a cash flow from operating activities. In conjunction with the SEC review, it was determined that proceeds from the sale of digital assets should be classified as cash flow from investing activities." Additionally, Bitfarms stated that it was also restating its financials "to adjust for an error in the accounting for the redemption of warrants in 2023." On this news, Bitfarms' stock price fell $0.13 per share, or 6.07%, to close at $2.01 per share on December 10, 2024. 

What Now: You may be eligible to participate in the class action against Bitfarms Ltd. Shareholders who want to serve as lead plaintiff for the class are required to file their papers with the court by July 8, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.

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SOURCE Robbins LLP