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Northern Data has filed a motion to dismiss a lawsuit from former employees, arguing that the court lacks jurisdiction and the claims lack sufficient detail.
Northern Data Seeks Dismissal of Employee Lawsuit
American branches of the European Bitcoin mining company Northern Data have filed a motion to dismiss a lawsuit brought against them in the Central District Court of California by former employees Joshua Porter and Gulsen Kama.
The motion argues that the court lacks authority over the case, stating, “Northern Data is not subject to general personal jurisdiction in California” as the company’s U.S. branches are incorporated in Delaware and based in Virginia.
Fraud Allegations and Insufficient Details
The company claims that Porter and Kama failed to provide enough specific details to back their accusations of fraud, calling the suit an “effort by former employees to extract additional compensation from Northern Data.” Addressing allegations of fraud, the company argues that Porter and Kama failed to specify exactly who was involved, what happened, when or where the fraud supposedly took place.
“Northern Data is contesting these allegations vigorously to protect ourselves against false assertions which damage our company and our business.”
Claims of Misrepresentation and Tax Evasion
In early July, the former Northern Data executives stated in a lawsuit that the Frankfurt-headquartered company was “misrepresenting the strength of its financial condition to investors, regulators, and business partners,” adding that the firm “was committing tax evasion to the tune of potentially tens of millions of dollars.”
A Northern Data spokesperson refuted these allegations, emphasizing the company’s commitment to contesting them.
Potential IPO for AI and Data Center Businesses
Meanwhile, Northern Data is reportedly considering an initial public offering (IPO) for its combined artificial intelligence (AI) cloud computing and data center businesses in the U.S. next year. This move could potentially value the entity between $10 billion and $16 billion.
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