According to BlockBeats, on October 1, Cointelegraph reported that U.S. District Court Judge Jamel Semper dismissed a class action lawsuit against Bitcoin mining company Iris Energy without prejudice, ruling that investors who filed the lawsuit could not prove that the company had ever falsified statements or deliberately misled investors. The lawsuit accused Iris Energy, its executives and its underwriters (including JPMorgan Chase and Citigroup Global Markets) of violating the Securities Act and the Securities Exchange Act during its 2021 IPO.
The plaintiffs claim that documents related to the Australian crypto miner's November 2021 IPO and several other statements in the following months contained several key inaccuracies. In addition, they claim that Iris concealed risks, failed to disclose information about the loans it had taken to finance its mining equipment, and made several "false and misleading" statements about the company's overall financial condition, including its profits, losses, and assets on hand. However, Judge Semper found that Iris had no obligation to disclose all the details of its loan financing and that the plaintiffs failed to prove that Iris's disclosures were materially misleading.
