Bitfarms Faces Legal Scrutiny Over Financial Restatements

2025-03-31 companies

Toronto, Tuesday, 1 April 2025.
Rosen Law Firm investigates potential class action for Bitfarms investors after financial restatements were announced, impacting stock prices by 6%. No upfront legal fees for participants.

Investigation Background

The Rosen Law Firm’s investigation stems from Bitfarms’ December 9, 2024 announcement regarding material errors in their financial statements. The company revealed the need to restate consolidated financial statements for fiscal years 2022 and 2023, specifically concerning the classification of proceeds from digital asset sales and warrant redemption accounting [1][2]. This disclosure triggered an immediate market reaction, with Bitfarms’ stock (NASDAQ: BITF) declining 6% to close at $2.01 per share on December 10, 2024 [5].

Multiple Law Firms Launch Investigations

While Rosen Law Firm leads the investigation, other prominent legal entities have also initiated their own inquiries. Notably, Pomerantz LLP, with offices across major global cities, has launched a parallel investigation into potential securities fraud or unlawful business practices by Bitfarms and its officers [6]. This multi-firm approach underscores the significance of the financial restatement issue [alert! ‘extent of potential legal liability not yet determined’].

Investor Participation and Legal Process

Affected investors can join the potential class action without upfront costs through a contingency fee arrangement [3]. The Rosen Law Firm, ranked in the top 4 for securities class action settlements since 2013, has established a dedicated online portal for investor participation at rosenlegal.com [4]. The firm’s track record includes securing over $438 million for investors in 2019 alone [1][3].

Sources

Bitfarms litigation Rosen Law