A class action lawsuit has been filed against Iris Energy (IREN), the bitcoin miner that announced last month that some of its mining equipment isn’t producing enough cash to meet its financing obligations.
The case was filed in the United States District Court for the District of New Jersey.
The suit claims that Iris Energy has repeatedly provided materially false information and misled investors, beginning with the documentation for the company’s IPO in 2021. Those documents were prepared carelessly and failed to disclose that certain mining machines “owned through its Non-Recourse SPVs” were “unlikely to produce sufficient cash flow to service their respective debt financing obligations.”
As its shares were traded on the Nasdaq, Iris Energy continued to mislead investors throughout 2022. According to the suit, the miner downplayed the severity of its debt and sought to reassure investors by emphasising its strategy of “operational efficiency and securing additional financing.”
You need to login in order to Like
