applied digital -- ai pivot puffery
published: February 22, 2026 •
on this page
case overview
| Case | McConnell v. Applied Digital Corporation, N.D. Tex. |
| Court | U.S. District Court, Northern District of Texas |
| Filed | August 2023 (amended July 2024) |
| Class Period | April 13, 2022 — July 26, 2023 |
| Stock Drop | -10%+ on power outage disclosure |
| Status | Pending |
allegations
wolfpack research and bear cave published reports alleging applied digital “pumped up its stock by claiming to pivot from a floundering business hosting bitcoin miners, to becoming a low-cost ai cloud service provider” and that it “relies on puffery over substance.”
in january-february 2024, the company disclosed a power outage at its ellendale datacenter that materially impacted quarterly revenue, raising further questions about operational viability.
sources
last updated: february 22, 2026