Iris Energy Limited

On July 11, 2024, Culper Research published a report alleging, among other things, that Iris Energy “talks a big game of its [high performance computing (“HPC”)] plans but ultimately seems entirely disinterested in actually doing what it takes to compete in the space,” and that the Company “is a painfully transparent stock promotion that will unravel as investors realize [its] HPC claims are nonsense and [it] remains a cash guzzling machine.” The report further states that the Company’s facilities were built for BTC mining and “are ill-equipped for HPC workloads without billions in additional costs.”

On this news, Iris Energy’s stock price fell $1.70, or 13.2%, to close at $11.20 per share on July 11, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants overstated Iris Energy’s prospects with data centers and high performance computing, in large part as a result of material deficiencies in Iris Energy’s Childress County, Texas site; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.