Bitcoin miner Northern Data files motion to dismiss ex-directors lawsuit

Northern Data filed a motion to dismiss the lawsuit filed by the former employees, arguing that the court lacked jurisdiction and that the allegations were insufficiently detailed.

The American branches of European Bitcoin mining company Northern Data have filed a lawsuit to dismiss a lawsuit filed against them by former employees Joshua Porter and Gulsen Kama in the California Central District Court.

The petition, seen by Crypto.news, argues that the court has no jurisdiction over the case, stating that “because Northern Data’s U.S. subsidiaries are incorporated in Delaware and headquartered in Virginia, the company is not subject to general personal jurisdiction in California.”

The company also claims that Porter and Kama did not provide sufficient details to support their accusations of fraud, calling the lawsuit “a poorly disguised effort by former employees to obtain additional compensation from Northern Data.” The company argues that in addressing the allegations of fraud, Porter and Kama failed to specify exactly who was involved, what happened, when or where the fraud occurred.

In early July, former Northern Data executives said in a lawsuit that the Frankfurt-based company “falsely represented the strength of its financial position to investors, regulators and business partners” and that the company “knowingly engaged in tax evasion of potentially tens of millions of dollars.”

A spokesperson for Northern Data denied the allegations, saying the company “strongly opposes these claims to protect ourselves from false claims that harm our company and our business”.

Meanwhile, Northern Data is reportedly considering the possibility of holding an initial public offering (IPO) in the US next year covering its artificial intelligence (AI), cloud computing and data centre businesses, which could value the company at between $10 billion and $16 billion.