The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Iris Energy Limited (IREN) Investors
LOS ANGELES--(BUSINESS WIRE)--Dec 19, 2022--
The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Iris Energy Limited (“Iris” or the “Company”) (NASDAQ: IREN ) investors who purchased: (a) ordinary shares pursuant and/or traceable to the Offering Documents issued in connection with the Company’s November 2021 initial public offering (“IPO”); and/or (b) securities between November 17, 2021 and November 1, 2022, inclusive (the “Class Period”). Iris investors have until February 13, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On or about November 17, 2021, Iris conducted its initial public offering (“IPO”), selling approximated 8.27 million ordinary shares at $28 per share.
On November 2, 2022, Iris disclosed that “[c]ertain equipment (i.e., Bitcoin miners) owned by [Non-Recourse SPV 2 and Non-Recourse SPV 3] 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 “[r]estructuring discussions with the lender remain ongoing.”
On this news, Iris’s stock price fell $0.51, or 15%, to close at $2.88 per share on November 2, 2022 – 89.7% less than the original IPO price – thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) 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; (2) accordingly, Iris’s use of equipment financing agreements to procure Bitcoin miners was not as sustainable as Defendants had represented; (3) the foregoing was likely to have a material negative impact on the Company’s business, operations, and financial condition; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Iris securities during the Class Period, you may move the Court no later than February 13, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Iris securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20221219005267/en/
CONTACT: The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: The Law Offices of Frank R. Cruz
Copyright Business Wire 2022.
PUB: 12/19/2022 01:00 PM/DISC: 12/19/2022 01:00 PM