Marathon shareholders file lawsuit against company's senior management
CEO and other top executives charged with breach of fiduciary duty, unjust enrichment and waste of company assets company.
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U.S.-based crypto mining company Marathon Digital is heading to court after its shareholders alleged that its CEO Fred Thiel, alongside other senior executives, breached his fiduciary duties, unfairly enriched and wasted company assets.
A shareholder complaint against Fred Thiel and nine other Marathon executives was filed in the United States District Court for the District of Nevada on July 8. The directors of the company are being sued on the basis of five complaints. These include violations of US stock exchange law, breach of fiduciary duty, unjust enrichment, and waste of company assets.
The plaintiffs also demand potential contribution from Thiel, Merrick Okamoto, Simeon Salzman and Hugh Gallagher for wrongdoing leading to a U.S. Securities and Exchange Commission (SEC) complaint against the company. The legal team representing the shareholders did not ask the defendants for a specific sum, leaving it to the court to decide on any compensation.
Shareholders also aim to fix corporate governance by strengthening board oversight of operations, nominating at least four shareholder nominees to the board, and scrapping the previous procedure for electing directors.
Related: Marathon Digital Blames Weather for Mining 21% Less Bitcoin in June
According to the legal team, the company's management downplayed its problems, artificially inflated Marathon's valuation, received excessive compensation, conducted lucrative insider selling and received unduly high bonuses based on false claims and misleading.
In May, Marathon received a subpoena from the SEC "regarding, among other things, transactions...
CEO and other top executives charged with breach of fiduciary duty, unjust enrichment and waste of company assets company.
News
Join us on social networks
U.S.-based crypto mining company Marathon Digital is heading to court after its shareholders alleged that its CEO Fred Thiel, alongside other senior executives, breached his fiduciary duties, unfairly enriched and wasted company assets.
A shareholder complaint against Fred Thiel and nine other Marathon executives was filed in the United States District Court for the District of Nevada on July 8. The directors of the company are being sued on the basis of five complaints. These include violations of US stock exchange law, breach of fiduciary duty, unjust enrichment, and waste of company assets.
The plaintiffs also demand potential contribution from Thiel, Merrick Okamoto, Simeon Salzman and Hugh Gallagher for wrongdoing leading to a U.S. Securities and Exchange Commission (SEC) complaint against the company. The legal team representing the shareholders did not ask the defendants for a specific sum, leaving it to the court to decide on any compensation.
Shareholders also aim to fix corporate governance by strengthening board oversight of operations, nominating at least four shareholder nominees to the board, and scrapping the previous procedure for electing directors.
Related: Marathon Digital Blames Weather for Mining 21% Less Bitcoin in June
According to the legal team, the company's management downplayed its problems, artificially inflated Marathon's valuation, received excessive compensation, conducted lucrative insider selling and received unduly high bonuses based on false claims and misleading.
In May, Marathon received a subpoena from the SEC "regarding, among other things, transactions...
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