The Law Offices of Frank R. Cruz Continues Its Investigation of Core Scientific, Inc. (CORZ) on Behalf of Investors

The Law Offices of Frank R. Cruz continues its investigation of Core Scientific, Inc. (“Core Scientific” or the “Company”) (NASDAQ: CORZ) on behalf of investors concerning the Company’s possible violations of federal securities laws.

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On March 3, 2022, Culper Research issued a report alleging, among other things, that Core Scientific "has wildly oversold both its mining and hosting businesses, which it cobbled together in a series of questionable transactions before dumping onto the market via SPAC." Moreover, the Company had “waived the 180-day lockup on over 282 million shares, making them free to be dumped just 5 trading days” from the time of the report, showing that “insiders have abandoned any pretense of care for minority shareholders."

On this news, Core Scientific’s stock fell $0.72, or 9.4%, to close at $6.98 on March 3, 2022, thereby injuring investors.

Then, on September 28, 2022, Celsius Network LLC and related entities filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific “has knowingly and repeatedly violated the automatic stay provisions” by refusing to perform its contractual obligations, threatening to terminate the companies’ agreement, and adding improper surcharges.

On this news, Core Scientific’s stock price fell $0.15, or 10.3%, to close at $1.30 on September 29, 2022, thereby injuring investors further.

Then, on October 27, 2022, before the market opened, Core Scientific disclosed that “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” and that it is exploring alternatives to its capital structure. Moreover, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.

On this news, Core Scientific’s stock fell $0.79, or 78.1%, to close at $0.22 per share on October 27, 2022, thereby injuring investors further.

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If you purchased Core Scientific securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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