update 18 August 2021

Canaan, a Bitcoin Mining Rig Manufacturer, Sued by An Investor

Recently, an investor filed a lawsuit against Canaan, a Bitcoin mining company, for allegedly breaking U.S securities laws during its IPO. Canaan filed its Initial Public Offering with the SEC last November and targeted to raise over $400 million. 

Nevertheless, Canaan raised only $90 million after listing on the Nasdaq Global Marketplace.

Phillippe Lemieux, an investor in Canaan, filed a class-action lawsuit claiming that the company violated the Securities Act of 1933. 

More Details on Why the Investor Sued Canaan

Lemieux said Canaan misled investors and the Securities and Exchange Commission about its financial health and operations status in its IPO filing to the SEC. The plaintiff further alleged that the company silently removed some suspicious distributors from its website before the IPO.

Additionally, Lemieux claimed that some of Canaan’s stated clients are likely not in the Bitcoin mining industry. The plaintiff is demanding a jury trial at the United States District Court for the District of Oregon. Lemieux and other class members seek compensation for damages.

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The litigation representing the plaintiff said that the lawsuit filed one year after discovering the false statement made by the mining rig is timely. The firm encourages all investors who participated in the company’s IPO and suffered a significant loss to contact them for assistance.