Hut 8 to pay $2.35 million to settle investor suit over U.S. Bitcoin merger

Hut 8 Corp. agreed to pay $2.35 million on June 10, 2024, to settle a class-action lawsuit filed by its investors concerning its 2023 merger with U.S. Bitcoin Corp. The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleged that Hut 8 and its former executives made misleading statements about the financial health and operational capabilities of U.S. Bitcoin Corp. prior to the merger. Investors claimed these misrepresentations inflated the stock price and harmed shareholders. Hut 8 has consistently denied any wrongdoing, stating that the settlement is a pragmatic decision to avoid further costly litigation. The company's legal team indicated that the settlement does not constitute an admission of liability. The merger, which closed in November 2023, created a larger, publicly traded bitcoin mining company. The terms of the settlement require court approval. This resolution aims to conclude the legal dispute that has been ongoing since the merger announcement.