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Iris Energy Ltd.

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Iris Energy Ltd. (“Iris” or the “Company") (NASDAQ: IREN) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Iris’ November 2021 initial public offering (the “IPO” or “Offering”). Investors have until February 6, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Iris operates as a renewable energy company with real assets, including data center infrastructure, powered by renewable energy.
On or about November 17, 2021, Iris conducted the IPO, issuing approximately 8.27 million of its ordinary shares to the public at a price of $28 per ordinary share for approximate proceeds to the Company of $215 million, before expenses, and after applicable underwriting discounts and commissions.
On November 2, 2022, Iris issued a press release disclosing, among other things, that “[c]ertain equipment (i.e., Bitcoin miners) owned by [Non-Recourse SPV 2 and Non-Recourse SPV 3] currently produce insufficient cash flow to service their respective debt financing obligations and have a current market value well below the principal amount of the relevant loans” and that “[r]estructuring discussions with the lender remain ongoing.” On this news, the price of Iris shares declined by $0.51 per share, or approximately 15.04%, from $3.39 per share to close at $2.88 on November 2, 2022—a nearly 90% decline from the Offering price.
The lawsuit alleges that, throughout the Class Period, Defendants misled investors and/or failed to disclose that: (i) certain of Iris’s Bitcoin miners, owned through its Non-Recourse SPVs, were unlikely to produce sufficient cash flow to service their respective debt financing obligations; (ii) accordingly, Iris’s use of equipment financing agreements to procure Bitcoin miners was not as sustainable as Defendants had represented; and (iii) the foregoing was likely to have a material negative impact on the Company’s business, operations, and financial condition.

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