Originally published on: October 01, 2024
A recent class-action lawsuit brought against Iris Energy by investors alleging misleading information during its initial public offering has been dismissed by a US District Court judge. The lawsuit claimed that Iris Energy failed to disclose key risks to investors, but Judge Jamel Semper ruled that there was no evidence of intentional deception.
The lawsuit, filed against Iris Energy, its executives, and underwriters such as J.P. Morgan and Citigroup Global Markets, accused the company of violating securities laws during its 2021 IPO. The plaintiffs alleged discrepancies in the company’s IPO documents and subsequent statements related to its financial condition.
Despite the allegations, Judge Semper found that Iris Energy had not made materially misleading disclosures and had no obligation to reveal all details about its financing. The case was dismissed without prejudice, meaning the plaintiffs have the opportunity to refile their claims.
Iris Energy went public in November 2021, raising $232 million through its IPO. However, the company’s share price plummeted shortly after, coinciding with a market-wide decline in the value of Bitcoin. The dismissal of the lawsuit comes in the wake of criticism from short-selling firm Culper Research, which had accused Iris Energy of being overvalued and underinvested in high-performance computing.
Despite the legal challenges and market volatility, Iris Energy continues to navigate the crypto mining industry with resilience. Stay tuned for more updates on this evolving story. To stay informed on all things blockchain and crypto, subscribe to our Crypto Biz newsletter for valuable insights every Thursday.
