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

The case has been dismissed, typically without any further action.

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.

Case Status

Dismissed

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

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