Bitcoin mining company Hut 8 has agreed to pay $2.35 million to settle a proposed securities class action brought by investors.

According to Foresight News, The Energy Mag reported that investors alleged Hut 8 overstated the benefits of its 2023 all-stock merger with U.S. Bitcoin Corp.

The complaint also said Hut 8 did not adequately disclose power and network connectivity issues at U.S. Bitcoin Corp.’s King Mountain mining site in Texas.

Hut 8 did not admit wrongdoing or that it caused investor losses.