A class-action lawsuit filed by investors against Bitcoin mining company Iris Energy has been dismissed by a U.S. District Court judge, as reported by Cointelegraph. The lawsuit alleged that Iris Energy misrepresented critical risks during its 2021 initial public offering (IPO).

In a ruling dated September 27, Judge Jamel Semper dismissed the case without prejudice, concluding that the plaintiffs failed to demonstrate that Iris Energy (IREN) had made false statements or intentionally misled investors. The lawsuit claimed violations of the Securities Act and the Securities Exchange Act by Iris Energy, its executives, and its underwriters, including J.P. Morgan and Citigroup Global Markets, during the company’s IPO.

The investors pointed to inaccuracies in the materials related to Iris Energy’s IPO in November 2021 and subsequent statements. They alleged that the firm did not disclose risks associated with loans used to finance mining equipment and made misleading claims about its financial performance, including profits and asset valuations.

However, Judge Semper determined that Iris Energy was not required to provide exhaustive details about its financing. The court found no evidence that the company’s disclosures were materially misleading. Iris Energy’s IPO, which occurred on November 17, 2021, raised $232 million, with shares initially priced at $28 but quickly declining amid a broader market downturn. By January 24, 2022, the share price had dropped by 69%, correlating with a 36% fall in Bitcoin’s value during the same timeframe.

Following the dismissal on September 30, Davis Polk, the law firm representing Iris Energy, noted that the plaintiffs were attempting to recover losses resulting from the general decline in Bitcoin prices in 2022. Additionally, Iris Energy has faced scrutiny from short-selling firm Culper Research, which labeled the company as “wildly overvalued” and criticized its insufficient investment in the high-performance computing (HPC) sector, claiming it made extravagant promises without the necessary financial backing.