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Applied Digital Corp. (NASDAQ:APLD) said its audit committee conducted an internal investigation into a sexual harassment claim against Chief Executive Officer Wes Cummins.
The investigation looked into a “threat, but not a formal assertion” of a claim of sexual harassment by the company’s Chief Marketing Officer, Regina Ingel, based on a personal relationship between Ingel and CEO Cummins, according to an 8-K filing on Friday.
Based on information obtained through the investigation, the audit committee determined that the relationship between the parties was consensual and that allegations of workplace harassment were “unfounded.”
“The Board has reaffirmed Mr. Cummins’ role as Chief Executive Officer of the Company and will consider any additional actions that may be appropriate with respect to this matter,” the company said in the filing.
In the same filing earlier Friday and a press release, Applied Digital (APLD) said its AI Cloud Service secured its second AI customer with an agreement worth up to $460 million over three years, sending the shares up 10%.
Applied Digital short interest is 11%.
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