Investors in Bitcoin mining firm Argo Blockchain have slapped the firm with a class-action lawsuit, accusing it of making false claims pre-IPO. 

The London-based firm raised $112.5 million in a September 2021 offering, selling 7.5 million shares to the public at a price of $15 each. 

In a filing, the lawsuit alleged that documents submitted prior to the IPO contained “untrue statements” and that they were “not prepared in accordance with the rules and regulations.”

The suit also alleges that Argo downplayed risks surrounding its capital constraints, electricity, and network difficulties, and “misrepresented the truth about Argo’s finances and business prospects.”

The filing went on say that the firm produced 25% fewer Bitcoin in May 2022 compared to April 2022 because of the aforementioned increased network difficulty, higher electricity prices, and the disruption of mining operations at its Texas “Helios” facility.