On October 1, COINOTAG reported, via Cointelegraph, that U.S. District Court Judge Jamel Semper has dismissed a class action lawsuit against Bitcoin mining company Iris Energy. The ruling, made without prejudice, indicates that the investors could not substantiate claims that the company had issued falsified statements or intentionally misled them. The lawsuit targeted Iris Energy, along with its executives and underwriters, such as JPMorgan Chase and Citigroup Global Markets, alleging violations of the Securities Act and the Securities Exchange Act during the company’s November 2021 IPO.
Investors alleged that significant inaccuracies were present in the IPO documentation and subsequent statements. They also claimed that Iris Energy had hidden risks and failed to disclose details about loans used for financing mining equipment, presenting a misleading picture of its overall financial condition, including profits and assets. However, Judge Semper ruled that there was no requirement for Iris to disclose every detail of its financing arrangements, and that the plaintiffs did not sufficiently prove that Iris’s disclosures were materially misleading.