On November 17, 2021, Iris conducted its IPO, selling 8.27 million shares of stock priced at $28.00. On November 2, 2022, Iris issued a press release disclosing, among other things, that "[c]ertain equipment (i.e., Bitcoin miners) owned by . . . special purpose vehicles currently produce insufficient cash flow to service their respective debt financing obligations, and have a current market value well below the principal amount of the relevant loans" and that "[r]estructuring discussions with the lender remain ongoing."

Following this news, Iris's stock price fell $0.51 per share, or 15.04%, to close at $2.88 per share on November 2, 2022.

The complaint alleges that in the Offering Documents and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of Iris’s Bitcoin miners, owned through its Non-Recourse SPVs, were unlikely to produce sufficient cash flow to service their respective debt financing obligations; (ii) accordingly, Iris’s use of equipment financing agreements to procure Bitcoin miners was not as sustainable as the defendants had represented; (iii) the foregoing was likely to have a material negative impact on Iris’s business, operations, and financial condition; and (iv) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.