According to Globenewswire, a shareholder of Iris Energy (IREN), a bitcoin mining company represented by Robbins LLP, has initiated a class-action lawsuit against Iris Energy, accusing Iris Energy of violating the Securities Act of 1933, 1934.
Iris bills herself as the leading owner and operator of proprietary, highly efficient, institutional-grade Bitcoin mining data centers powered by 100% renewable energy.
According to the complaint, Iris conducted its IPO on November 17, 2021, issuing approximately 8.27 million shares at $28.00 a share. However, the Offering Document in support of the IPO was misleading.
Specifically, the offering document does not disclose that some of Iris’ Bitcoin miners are owned through wholly owned special purpose vehicles, which are incapable of generating sufficient cash flow to service meet their respective debt financing obligations.
Robbins said that Iris Energy’s previous IPO documents misrepresented the loan and that the market value of the mining block was much lower than the principal of the loan.
In addition, Iris Energy previously announced that it was discussing a restructuring plan with its creditors, resulting in the company’s share price falling by $0.51 per share (15.04%), to $2.88/share, down nearly 90% from the IPO price.
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