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IREN.US
id: 493

Jarryd Anthony Malouf, et al. v. Iris Energy Limited Case

D. New Jersey
Court
On 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.

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
01 November 2022
Filing date
07 December 2022
Collecting participants…

Iris Energy Ltd

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

    Ticker
    IREN.US
    ISIN
    AU0000185993
    CIK
    1878848
    Sector
    Financial Services
    Industry
    Capital Markets
    Country
    USA
    Address
    44 Market Street, Sydney, NSW, Australia, 2000