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IREN.US
id: 493
Jarryd Anthony Malouf, et al. v. Iris Energy Limited Case
D. New Jersey
CourtOn November 2, 2022, Iris Energy (IREN) disclosed that “certain equipment (i.e., Bitcoin miners) currently produce insufficient cash flow to service their respective debt financing obligations and have a current market value well below the principal amount of the relevant loans” and that “restructuring discussions with the lender remain ongoing.”
On this news, IREN's share price dropped 15% on November 2, 2022, a nearly 90% decline from the Offering price.
Going back in November 2021 Iris conducted the IPO at the Offering price of $28 per ordinary share.
Taking appearing facts into account, Investors have reasons to suspect that the Company, its Leaders, and its Service Providers did not properly disclose information in the Offering Documents, misleading future shareholders regarding the Company’s business, operations, and prospects, specifically:
- certain of Iris’s Bitcoin miners, owned through its Non-Recourse SPVs, were unlikely to produce sufficient cash flow to service their respective debt financing obligations;
- Iris’s use of equipment financing agreements to procure Bitcoin miners was not sustainable;
- the foregoing was likely to have a material negative impact on the Company’s business, operations, and financial condition.
Case Status
Attorney Investigation
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Investment Bank,
Service Provider,
Research Entity,
Hedge Fund
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/01/2022
Filing date
12/07/2022