Court Dismisses Former Staffers’ Suit against Northern Data
Claims by both plaintiffs have been dismissed without prejudice
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The lawsuit filed by two former executives of Northern Data, accusing the Bitcoin mining and data center operator of fraud, has been dismissed by the California Central District Court.
According to the court docket’s update, the case was resolved and terminated earlier this month following voluntary dismissals by the plaintiffs, Joshua Porter and Gulsen Kama.
Porter and Kama served as the Chief Operating Officer and Chief Financial Officer, respectively, of Northern Data’s U.S. division before being dismissed.
Porter and Kama filed the complaint in April. But the case wasn’t reported until July by the Financial Times, shortly after Bloomberg reported that Northern Data was considering a U.S. initial public offering for its AI and cloud computing segments.
In the original complaint, the plaintiffs alleged that Northern Data had “falsely misrepresented the strength of its financial condition to investors, regulators, and business partners” and was “knowingly committing tax evasion potentially amounting to tens of millions of dollars.”
Northern Data responded at the time by stating, “It is no coincidence that these allegations from disgruntled former employees are being publicized just days after unconfirmed media speculation that the company is evaluating a potential capital markets event.”
A hearing was initially scheduled for August 19. It is unclear what led the plaintiffs to dismiss all claims against their former employer.
Northern Data recently announced it was considering divesting Peaking Mining, its proprietary Bitcoin mining subsidiary, to focus on its AI and cloud computing businesses.
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