Investors from Colorado, Florida and New Jersey have respectively submitted class action lawsuits against Riot Blockchain. After changing its name in October to include the word “Blockchain,” the public company watched its stock skyrocket from $8 a share to $38. Now the investors claim that Riot Blockchain violated US securities laws by issuing misleading and false statements regarding their business. One of the filings claims that when Bioptix changed its name to Riot Blockchain in October 2017, they did this to capitalize on the trend of Blockchain technologies and cryptocurrencies but lacked the actual expertise to take on a Blockchain acquisition and Bitcoin/Ethereum mining endeavors.
Public Company That Included Blockchain in its Name Faces Class Action Lawsuits