Skadden helped secure the dismissal of a putative securities fraud class action on behalf of an underwriter syndicate including JP Morgan Securities, Canaccord Genuity, Citigroup Global Markets Inc., Galaxy Digital Partners, Macquarie Capital (USA) Inc., Compass Point Research & Trading, and Cantor Fitzgerald & Co. The plaintiffs raised claims against the underwriter defendants alleging the offering materials misrepresented and/or failed to disclose certain material facts about Iris Energy’s debt financing obligations and goodwill. Judge Jamel K. Semper of the U.S. District Court for the District of New Jersey dismissed the complaint without prejudice. The court found that the plaintiffs failed to sufficiently plead why alleged omissions made statements about counterparty risk and cash flow misleading, and that they failed to allege that Iris’ statements regarding its goodwill were insincere or untrue at the time they were made. Scott Musoff led the Skadden team.
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