SAN DIEGO--(BUSINESS WIRE)--Haeggquist & Eck, LLP (“HAE”) announces an investigation of potential corporate misconduct at Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot” or the “Company”). HAE is examining potential misrepresentations by Riot’s Board of Directors and executives concerning the Company’s operations and financial condition related to blockchain technologies.
On October 4, 2017, a company known as Bioptix, Inc. (“Bioptix”) (NASDAQ: BIOP) announced that it was changing its name from Bioptix to Riot Blockchain, Inc., and was shifting its operations from veterinary products to blockchain technologies. On December 27, 2017, Riot provided less than one day of notice that it was adjourning its December 28, 2017 annual shareholder meeting (the “Meeting”) to February 1, 2018. On January 31, 2018, Riot again postponed the Meeting on one day of notice, to purportedly achieve a quorum.
On February 16, 2018, CNBC issued a report setting forth its conclusion that, among other things, Riot had no real underlying blockchain business plan, paid more than $11 million for cryptocurrency mining equipment worth $2 million, and presumably had no intent of holding the Meeting. CNBC, as well as other investment reporting services, have cited these and other “red flags” concerning Riot’s operations.
Several securities class action lawsuits have been filed against Riot (“the Class Actions”). The Class Actions currently seek damages on behalf of shareholders who acquired Riot’s securities between October 4, 2017 and February 15, 2018 (the “Class Period”). Riot’s stock price fell more than 33% at the end of the Class Period as the negative news was released concerning the Company. The deadline to move to be appointed lead plaintiff in the Class Actions is April 18, 2018.
Riot Shareholders Have Legal Options
Riot shareholders may contact Kathleen Herkenhoff at kathleenh@haelaw.com, to seek further information concerning the various representative actions available to seek relief for the above described misconduct. When sending your e-mail, please include a telephone number where Ms. Herkenhoff may contact you.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights and consumer protection law. Members of the firm have helped shareholders recover more than $1 billion of value for themselves and/or for the companies in which shareholders have invested.
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