Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In IRSA Inversiones Y Representaciones Sociedad Anónima To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in IRSA Inversiones Y Representaciones Sociedad Anónima (“IRSA” or the “Company”) (NYSE:IRS) of the April 25, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased IRSA securities between November 3, 2014 and December 30, 2015 (the “Class Period”). The case, Melissa Butts v. IRSA Inversiones Y Representaciones Sociedad Anonima et al, No. 2:16-cv-01234 was filed on February 23, 2016, and has been assigned to Judge Alka Sagar.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the legal and organizational standing of its subsidiary Netherlands B.V. (“Dolphin”) and whether the subsidiary’s IDB Development Corporation Limited’s (“IDBD”) $6.7 billion net debt should be consolidated with the Company's financial statements.
Specifically, on November 19, 2015, Spruce Point Capital Management published an investment research report (“Report”) on the Company asserting that Dolphin does not adequately qualify as a Venture Capital Organization, and therefore, IDBD’s $6.7 billion net debt should be consolidated with the Company's financial statements. The Report also indicated that the consolidation of IDBD’s debt would violate IRSA’s Global Notes Indenture, since IRSA would be in breach of the “Incurrence of Additional Indebtedness” covenant, which prohibits its EBITDA to interest coverage ratio to be less than 1.75x.
After the publication of the Report, IRSA’s share price fell from a closing price of $16.67 per share on November 18, 2015 to a closing price of $15.06 on November 20, 2015—a $1.61 or a 9.7% drop.
If you invested in IRSA securities between November 3, 2014 and December 30, 2015 and would like to discuss your legal rights, please fill out the form below. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding IRSA’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.
* The submission of this form does not create an attorney-client relationship.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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