An investor in NYSE:IRS shares filed a lawsuit in the U.S. District Court for the Central District of California over alleged Securities Laws violations by Irsa Inversiones y Rprsntcins SA (“IRSA”).
Investors who purchased shares of Irsa Inversiones y Representaciones SA (ADR) (NYSE:IRS) have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2016. NYSE:IRS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff claims that the defendants issued certain allegedly false and misleading statements to investors and/or allegedly failed to disclose that IRSA’s subsidiary, Netherlands B.V. (“Dolphin”), does not adequately qualify as a Venture Capital Organization, and therefore, IDB Development Corporation Limited’s (“IDBD”) $6.7 billion net debt should be consolidated with IRSA’s financial statements, that the impending consolidation of IDBD’s debt would violate IRSA’s Global Notes Indenture, that the terms of the February 10, 2015 related party transaction between Dolphin and Inversiones Financieras Del Sur S.A. and that as a result, IRSA’s public statements were materially false and misleading at all relevant times.
On November 19, 2015, Spruce Point Capital Management published a report on Irsa Inversiones y Rprsntcins SA alleging, among other things, that Irsa Inversiones y Rprsntcins SA is keeping ~$7 billion of net debt off its books by not consolidating its controlling investment in Israel’s IDB Development Corp, and that Irsa Inversiones y Rprsntcins SA may therefore be in violation of its debt covenant under its existing US$300m Global Bond indenture that requires it to maintain an EBITDA/Interest coverage of 1.75x.
Those who purchased NYSE:IRS shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com