{"id":"d28df7de-82fe-4646-8e04-9d300968ccd8","slug":"cleanspark-securities-class-action-2021","kind":"regulatory_action","headline":"Securities class action filed against CleanSpark alleging material misstatements about ATL Data Centers acquisition","summary":"On January 20, 2021, Scott Bishins filed a class action complaint in the Southern District of New York against CleanSpark, CEO Zachary Bradford, and CFO Lori Love, alleging the company failed to disclose that it had overstated customer and contract figures and that several acquisitions involved undisclosed related party transactions. An amended complaint filed February 28, 2022 added Matt Schultz as a defendant and alleged material misstatements about the ATL Data Centers acquisition, including that an ATL predecessor had filed for bankruptcy six months prior and that a related party had performed an audit. The case was pending a motion to dismiss as of the FY2022 10-K filing.","occurredAt":"2021-01-20T00:00:00.000Z","reviewStatus":"unreviewed","modelId":null,"deploymentId":null,"companyId":"2ed9c726-41dd-4440-88b3-c8e2b4de895c","dataCenterId":null,"aliases":[],"collisionRisk":"none","reviewNote":null,"severity":"moderate","rootCauseCategory":null,"rootCauseDetail":null,"affectedUnitsCount":null,"affectedUnitsBasis":null,"remediationStatus":"outstanding","regulatoryAction":"inquiry_opened","regulatoryBody":"SEC","propertyDamageEstimateUsd":null,"damageEstimateBasis":null,"bodilyInjurySeverity":null,"fatalityCount":null,"lossCostClass":null,"sourceQualityTier":null,"oshaRecordable":null,"oshaCaseNumber":null,"rootCauseDisclosed":null,"publicDisclosureDate":null,"insuranceClaimPublic":null,"formFactor":null,"latitude":null,"longitude":null,"autonomyClass":null,"legalOutcomeClass":"unknown","createdAt":"2026-08-18T05:04:36.346Z","updatedAt":"2026-08-18T05:04:36.346Z","model":null,"deployment":null,"company":{"id":"2ed9c726-41dd-4440-88b3-c8e2b4de895c","name":"CleanSpark","slug":"cleanspark","description":"CleanSpark (NASDAQ: CLSK) is America's largest publicly-traded Bitcoin mining company by hashrate, operating over 50 EH/s across ~20 data centers in Georgia, Tennessee, Mississippi, Wyoming, and New York. Founded as an energy development company and pivoted to Bitcoin mining in 2016, CleanSpark is now expanding into AI data center infrastructure alongside its crypto operations.","status":"active","founded":1987,"hq":"Henderson, Nevada, USA","hqLat":null,"hqLng":null,"hqGeocodedAt":null,"hqAddress":null,"hqPrecision":null,"website":null,"fundingTotal":null,"type":null,"reviewStatus":"reviewed","lifecycleState":"active","supersededByCompanyId":null,"sources":[],"keyFacts":[{"label":"CEO","value":"Matt Schultz"},{"label":"Co-Founder","value":"Zachary Bradford"},{"label":"Hashrate","value":"50 EH/s (FY2025)"},{"label":"Revenue FY2025","value":"$766.3 million"},{"label":"Bitcoin Holdings","value":"13,011 BTC (as of Sept 30, 2025)"},{"label":"Deployed Miners","value":"241,227 (June 2025)"},{"label":"Power Under Contract","value":"987 MW"},{"label":"Data Centers","value":"~20 facilities across 5 US states"}],"aliases":[],"collisionRisk":"low","reviewNote":null,"atsProvider":null,"atsSlug":null,"factoryLocations":null,"manufacturingCapacity":null,"orgType":null,"burnSignal":null,"litigationEvents":null,"insurancePostureDisclosed":null,"unitEconomicsDisclosed":null,"tickerSymbol":"CLSK","stockExchange":"NASDAQ","secCik":null,"revenueUsd":null,"revenueBasis":null,"revenueAsOf":null,"employeeCount":null,"employeeCountBasis":null,"employeeCountAsOf":null,"marketCapUsd":null,"marketCapAsOf":null,"marketCapSource":null,"createdAt":"2026-08-18T04:03:27.822Z","updatedAt":"2026-08-18T05:04:52.605Z"},"derived":{"status":"active"},"sources":[{"id":"7e19d710-3067-4e3c-8e82-893dda971120","incidentId":"d28df7de-82fe-4646-8e04-9d300968ccd8","url":"https://www.sec.gov/Archives/edgar/data/827876/000095017022026564/clsk-20220930.htm","label":"SEC EDGAR (CleanSpark 10-K FY2022)","publishedAt":"2022-12-14T00:00:00.000Z","notes":null,"title":null,"sourceName":"SEC EDGAR (CleanSpark 10-K FY2022)","mediaType":"article","videoId":null,"channel":null,"durationSec":null,"timestampSec":null,"createdAt":"2026-08-18T05:04:36.346Z","updatedAt":"2026-08-18T05:04:36.346Z"}],"responses":[],"statusEvents":[{"id":"03d645bb-c271-4bf4-a8eb-ce5f5012023b","incidentId":"d28df7de-82fe-4646-8e04-9d300968ccd8","status":"active","reason":null,"source":"agent:recon","effectiveAt":"2026-08-18T05:04:37.560Z","createdAt":"2026-08-18T05:04:37.560Z"}],"jsonLd":{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://registry.deploy.report/incidents/cleanspark-securities-class-action-2021","url":"https://registry.deploy.report/incidents/cleanspark-securities-class-action-2021","headline":"Securities class action filed against CleanSpark alleging material misstatements about ATL Data Centers acquisition","description":"On January 20, 2021, Scott Bishins filed a class action complaint in the Southern District of New York against CleanSpark, CEO Zachary Bradford, and CFO Lori Love, alleging the company failed to disclose that it had overstated customer and contract figures and that several acquisitions involved undisclosed related party transactions. An amended complaint filed February 28, 2022 added Matt Schultz as a defendant and alleged material misstatements about the ATL Data Centers acquisition, including that an ATL predecessor had filed for bankruptcy six months prior and that a related party had performed an audit. The case was pending a motion to dismiss as of the FY2022 10-K filing.","identifier":"d28df7de-82fe-4646-8e04-9d300968ccd8","datePublished":"2021-01-20T00:00:00.000Z","articleSection":"regulatory action","publisher":{"@id":"https://deploy.report/#organization"},"author":{"@id":"https://deploy.report/#organization"}},"framework_metadata":{"framework_schema_version":"0.1.0","verification_status":"unreviewed","maturity_stage":null,"lifecycle_state":null,"architectural_position":{"cohort":null,"sub_cohorts":[]},"within_cohort_verified_vs_claimed_pair":null,"cap_flags":[],"verification_depth":{"sources_count":1,"primary_source_types":["primary-sec-filing"]}}}