Nasdaq-Listed “Blockchain” Companies Hit With New Legal Troubles127.03

Adding "Blockchain" to the name of their firms have proved to be very beneficial to the top management of publicly listed companies over the past year. Riot Blockchain, Inc. has been hit with a class action lawsuit in the Southern District of Florida. On October 4, Bioptix announced it was changing its name to Riot Blockchain and shifting its business focus to investing in blockchain technologies. Specifically, the complaint alleges defendants failed to disclose that it had changed its name to Riot Blockchain in order to generate investor enthusiasm and tie the company to the recent rise in the price of cryptocurrencies, despite its lack of a significant blockchain business in order to further an insider scheme that would allow Riot's controlling shareholder Barry Honig and his associates to sell their Riot securities at artificially inflated prices.
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