The settlement resolves claims that Hut 8 misled investors about its 2023 merger with U.S. Bitcoin Corp.
Hut 8 will pay $2.35 million to settle a class action lawsuit alleging it misled investors during its November 2023 merger with U.S. Bitcoin Corp. The suit claimed the company overstated merger benefits and failed to disclose energy and connectivity issues.
The settlement equals 20% of the maximum potential damages, according to court filings. Hut 8 denies wrongdoing, and the case cannot be refiled. The lawsuit gained momentum after a critical report by short seller J Capital Research in January 2024.
HUT shares have surged 662% over the past year, trading at $121.04 per share.