A group of investors have sued #iren , formerly Iris Energy, claiming the bitcoin miner misled them about its computing power and business prospects.
At issue in the class action lawsuit is IREN's facility in Childress, #Texas , which was billed as a data center and was ready, the company claimed, for high-performance computing (#HPC ). However, that's not what actually turned out to be the case.
The statement was knowingly false and misleading at the time it was issued because it overstated the company's prospects for HPC, given that its Childress site was ill-equipped for use as a data center and HPC, the lawsuit alleged.
The investors said they would not have invested in IREN had they known its prospects were âartificially and falsely inflated.â They also said the air-cooling design the company used to prevent the equipment from overheating was not properly tested and, because of that, failed to perform.
IREN's co-founders and co-#Ceo s, brothers Daniel and William Roberts, and the company's CFO, Belinda Nucifora, are named as defendants in the lawsuit. Investors are demanding compensation from them for damages.
IREN's stock price fell 6.71% to $7.51 on Wednesday, October 9, but has gained 10.44% since the beginning of the year.
IREN ranks seventh among bitcoin miners in terms of market capitalization, which is $1.42 billion.
