Bitcoin Mining Company, Underwriters Beat Class Action Over IPO

Investors of a Bitcoin mining operation had their proposed securities class action dismissed, for now, after a district court ruled they failed to sufficiently plead why challenged statements about counterparty risk and cash flow were misleading.

The lawsuit alleged Iris Energy Ltd., its executives, and its underwriters—which include J.P. Morgan Securities LLC and Citigroup Global Markets Inc.—violated both the Securities Act and the Securities Exchange Act in connection with its 2021 initial public offering. Judge Jamel K. Semper of the US District Court for the District of New Jersey dismissed the suit without prejudice Sept. 27.

Iris primarily uses ...