What changed in this filing

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Item 1. Legal Proceedings

2021-08-13 compared with 2021-05-10 · 56 added, 49 removed, 13 unchanged (89% of the section changed)

2 unchanged sentences

Feinberg Personal Trust and the Jeffrey L.

Feinberg Family

Trust, filed a complaint against the Company and certain of its former officers and directors.

The complaint was filed in the

Supreme Court of the State of New York, County of New York.

The plaintiffs purported to state claims under Sections 11, 12(a)(2)

and 15 of the federal Securities Act of 1933 and common law claims for “actual fraud and fraudulent concealment,”

constructive fraud, and negligent misrepresentation, seeking unspecified money damages (including punitive damages), as well as

costs and attorneys’

fees, and equitable or injunctive relief.

On June 15, 2018, the defendants filed a motion to dismiss

all claims asserted in the complaint and, on July 27, 2018, the plaintiffs filed an opposition to that motion.

The court heard

argument on the motion and, on January 15, 2019, the court granted the motion to dismiss, allowing 30 days for the filing of an

amended complaint.

On February 15, 2019, Jeffrey Feinberg, individually and as trustee of the Jeffrey L.

Feinberg Personal Trust,

and Terrence K.

Feinberg Family Trust,

filed a complaint against the Company and certain of its former officers and directors.

The complaint was filed in the Supreme Court

of the State of New York, County of New York.

The plaintiffs purported to state claims under Sections 11, 12(a)(2) and 15 of the federal

Securities Act of 1933 and common law claims for “actual fraud and fraudulent concealment,” constructive fraud, and negligent

misrepresentation, seeking unspecified money damages (including punitive damages), as well as costs and attorneys’ fees, and equitable

or injunctive relief.

On June 15, 2018, the defendants filed a motion to dismiss all claims asserted in the complaint and, on July 27,

2018, the plaintiffs filed an opposition to that motion.

The court heard argument on the motion and, on January 15, 2019, the court granted

the motion to dismiss, allowing 30 days for the filing of an amended complaint.

On February 15, 2019, Jeffrey Feinberg, individually

and as trustee of the Jeffrey L.

Feinberg Personal Trust, and Terrence K.

Ankner, as trustee of the Jeffrey L.

Feinberg Family Trust, filed an amended complaint that purports to state

the same claims and seeks the same relief sought in the original complaint.

On March 7 and 22, 2019, defendants filed motions

to dismiss the amended complaint and on April 5, 2019, plaintiffs filed an opposition to those motions.

The court heard oral argument

on the motions to dismiss on July 9, 2019, and at the conclusion of the argument the court took the motions under submission.

On April 22, 2021, the Company was notified the appellate court affirmed the decision to dismiss the case in its entirety.

January 14, 2021, Plaintiff Michael Ho (“Plaintiff”

or “Ho”) filed a Civil Complaint for Damages and Restitution

(“Complaint”) against Marathon Digital Holdings, Inc.

(the “Company”) and 10 Doe Defendants.

Complaint alleges six causes of action against the Company, (1) Breach of Written Contract;

Feinberg Family Trust,

filed an amended complaint that purports to state the same claims and seeks the same relief sought in the original complaint.

7 and 22, 2019, defendants filed motions to dismiss the amended complaint and on April 5, 2019, plaintiffs filed an opposition to those

The court heard oral argument on the motions to dismiss on July 9, 2019, and at the conclusion of the argument the court took

the motions under submission.

On March 13, 2020, the court issued its Decision in which it granted the motions to dismiss in full

and ordered that the case be dismissed with prejudice.

On or about May 4, 2020, the plaintiffs filed a notice of appeal.

Plaintiffs filed

their opening appellate brief on January 4, 2021, and defendants filed their responsive appellate briefs on February 3, 2021.

Oral argument

on the appeal was conducted on April 1, 2021.

On April 22, 2021, the court’s Appellate Division issued its Decision and

Order affirming the dismissal of the case.

January 14, 2021, Plaintiff Michael Ho (“Plaintiff” or “Ho”) filed a Civil Complaint for Damages and Restitution

(“Complaint”) against Marathon Patent Group, Inc., now known as Marathon Digital Holdings, Inc.

(the “Company”)

and 10 Doe Defendants in the Superior Court of the State of California for the County of Riverside.

The Complaint alleges six causes

of action against the Company, (1) Breach of Written Contract;

(2) Breach of Implied Contract;

2 unchanged sentences

(5) Intentional Interference with Prospective Economic Relations;

and (6) Negligent Interference

with Prospective Economic Relations, which is the one plead against “all Defendants”

and is most likely to involve

later named defendants.

The claims arise from the same set of facts, Ho alleges that the Company profited from commercially-sensitive

information he shared with the Company and then it refused to compensate him for his role in securing the acquisition of a supplier

of energy for the Company.

On February 22, 2021, the Company responded to Mr.

Ho’s Complaint with a general denial and the

assertion of applicable affirmative defenses.

Then, on February 25, 2021, the Company removed the matter to federal court.

parties are currently engaged in discovery, including written discovery and depositions.

Due to outstanding issues of fact and

law, it is impossible to predict the outcome at this time;

however, the Company is confident that it will prevail in this litigation

since it did not have a contract with Mr.

Ho and he did not disclose any commercially-sensitive information that was used to structure

any joint venture with energy providers.

than as disclosed herein, we know of no other material, active or pending legal proceedings against us, nor are we involved as

a plaintiff in any material proceedings or pending litigation other than in the normal course of business.

and (6) Negligent Interference with Prospective Economic Relations.

Claims 5 and 6 are pled against “all Defendants” and may involve later named defendants.

The Complaint seeks damages, restitution,

punitive damages, and costs of suit.

The claims arise from the same set of facts.

Ho alleges that the Company profited from commercially-sensitive

information he shared with the Company, purportedly under a mutual non-disclosure agreement, and that the Company failed to compensate

him for his role in securing the acquisition of a supplier of energy for the Company.

On February 22, 2021, the Company responded to

Ho’s Complaint with a general denial and the assertion of applicable affirmative defenses.

Then, on February 25, 2021, the

Company removed the action to the United States District Court in the Central District of California, where the action remains pending.

The parties are currently engaged in discovery, including written discovery and depositions.

Trial is set to begin on March 3, 2022.

Due to outstanding issues of fact and law, it is impossible to predict the outcome at this time;

however, the Company is confident that

it will prevail in this litigation since it did not have a contract with Mr.

Ho and he did not disclose any commercially-sensitive information

under any mutual nondisclosure agreement that was used to structure any joint venture with energy providers.

than as disclosed herein, we know of no other material, active or pending legal proceedings against us, nor are we involved as a plaintiff

in any material proceedings or pending litigation other than in the normal course of business.

Risk Factors.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Legal Proceedings