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JRV.V
id: 1531
Jervois Global ($JRV) Shareholder Wipeout and Misleading Debt Disclosure Case
The case has been dismissed, typically without any further action.
S.D. New York
Court1:25-cv-02293
Case number07/05/2021
Class period Start01/02/2025
Class period End- $JRV investors filed a lawsuit against Jervois Global for hiding debt risks tied to complex bond deals, ultimately leading to a complete loss of shareholder value.
- After Jervois entered Chapter 11 proceedings in January 2025 and confirmed the recapitalization plan in March 2025, $JRV investors lost 100% of their equity.
Case Details:
In 2021, Jervois Global ($JRV) entered a $100 million bond deal with hedge fund Millstreet Capital to fund its Idaho Cobalt Operations. While the company claimed the deal offered “commercial flexibility,” it never disclosed the full terms, including strict covenants and collateral pledges that gave Millstreet growing control over its assets.
Between 2022 and 2024, Jervois quietly transferred more control to Millstreet, including rights over its Brazilian and Finnish operations—all without shareholder approval. At the same time, it publicly promoted “asset partnerships” to improve its balance sheet, while secretly preparing a restructuring that would wipe out shareholder equity.
On January 2, 2025, Jervois filed for bankruptcy in the U.S. and entered voluntary administration in Australia. By March 6, 2025, a court-approved plan handed Millstreet full control of the company and left $JRV shareholders with nothing. Investors were never told their equity was at risk.
Based on these events, $JRV investors filed a lawsuit against Jervois Global, claiming the company:
- It misled investors by failing to disclose the risks of its bond deal and the transfer of control to Millstreet
- It failed to obtain shareholder approval for key transactions and concealed its plan to restructure the company through U.S. bankruptcy.
Investors believe Jervois hid critical information about its financial collapse, allowing insiders and creditors to regain control.
Case Type
US Securities Class Action
Case Status
Dismissed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
01/02/2025
Filing date
03/20/2025