NEW YORK, Dec. 28, 2015 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of IRSA Inversiones y Representaciones S.A. ("IRSA" or the "Company") (NYSE: IRS). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether IRSA and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
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, Los Angeles, and Florida, 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 70 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
SOURCE Pomerantz LLP