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.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
Variant Fund CLO Jake Chervinsky emphasized the potential impact of a spot ETH ETF approval,…
Ethereum co-founder Vitalik Buterin emphasized the urgent need for an open and decentralized protocol to…
The SEC may approve a spot Ethereum ETF soon, balancing the SEC's Ethereum classification that…
The GALA Ethereum contract was exploited, leading to the unauthorized minting and sale of 5…
Explore the top Base Meme Coins to invest in, including popular and promising tokens like…
The SEC accelerates 19b-4 filings review, sparking hope for Spot Ethereum ETF approval. However, approval…
This website uses cookies.