NEW YORK, March 21, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against IRSA Inversiones y Representaciones S.A ("IRSA" or the "Company") (NYSE: IRS) and certain of its officers. The class action, filed in United States District Court, Central District of California, is on behalf of a class consisting of all persons or entities who purchased IRSA securities between November 3, 2014 and December 30, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased IRSA securities during the Class Period, you have until April 25, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
IRSA is a real estate company that engages in a range of diversified real estates-related activities in Argentina. The Company is incorporated in the Republic of Argentina with principal executive offices located at Bolívar 108 (C1066AAB) Buenos Aires, Argentina.
The Complaint alleges that throughout the Class Period Defendants issued false and misleading statements to investors and/or failed to disclose that: (1) 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 the Company's financial statements; (2) the impending consolidation of IDBD's debt would violate IRSA's Global Notes Indenture; (3) the terms of the February 10, 2015 related party transaction between Dolphin and Inversiones Financieras Del Sur S.A.; and (4) as a result, the Company'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 asserting, among other things, that IRSA is keeping roughly $7 billion of net debt off the Company's books by not consolidating its controlling investment in Israel's IDB Development Corp., and that IRSA may therefore be in violation of its debt covenant under its existing $300 million Global Bond indenture that requires it to maintain an EBITDA/Interest coverage of 1.75x. In addition, the Spruce Point report alleged that certain of IRSA's related party transactions had not been fully disclosed.
On this news, shares of IRSA fell $1.25, or 7.7%, to close at $15.06 on November 20, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP