NEW YORK, April 6, 2016 /PRNewswire/ -- Faruqi &
Faruqi, LLP, a leading national securities law firm, reminds
investors in IRSA Inversiones Y Representaciones Sociedad Anónima
("IRSA" or the "Company") (NYSE:IRS) of the April 25, 2016 deadline to seek the role of lead
plaintiff in a federal securities class action lawsuit filed
against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the
Central District of California on
behalf of all those who purchased IRSA securities between
November 3, 2014 and December 30, 2015 (the "Class Period"). The
case, Melissa Butts v. IRSA
Inversiones Y Representaciones Sociedad Anonima et al, No.
2:16-cv-01234 was filed on February 23,
2016, and has been assigned to Judge Alka Sagar.
The lawsuit focuses on whether the Company and its executives
violated federal securities laws by failing to disclose the legal
and organizational standing of its subsidiary Netherlands B.V.
("Dolphin") and whether the subsidiary's IDB Development
Corporation Limited's ("IDBD") $6.7
billion net debt should be consolidated with the Company's
financial statements.
Specifically, on November 19,
2015, Spruce Point Capital Management published an
investment research report ("Report") on the Company asserting that
Dolphin does not adequately qualify as a Venture Capital
Organization, and therefore, IDBD's $6.7
billion net debt should be consolidated with the Company's
financial statements. The Report also indicated that the
consolidation of IDBD's debt would violate IRSA's Global Notes
Indenture, since IRSA would be in breach of the "Incurrence of
Additional Indebtedness" covenant, which prohibits its EBITDA to
interest coverage ratio to be less than 1.75x.
After the publication of the Report, IRSA's share price fell
from a closing price of $16.67 per
share on November 18, 2015 to a
closing price of $15.06 on
November 20, 2015—a $1.61 or a 9.7% drop.
Request more information now by clicking here:
www.faruqilaw.com/IRS. There is no cost or obligation to
you.
Take Action
If you invested in IRSA stock or options between November 3, 2014 and December 30, 2015 and would like to discuss your
legal rights, visit www.faruqilaw.com/IRS. You can also contact us
by calling Richard Gonnello toll
free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding IRSA's conduct to
contact the firm, including whistleblowers, former employees,
shareholders and others.
The court-appointed lead plaintiff is the investor with the
largest financial interest in the relief sought by the class that
is adequate and typical of class members who directs and oversees
the litigation on behalf of the putative class. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. Your ability to share in any
recovery is not affected by the decision of whether or not to serve
as a lead plaintiff.
Attorney Advertising. The law firm responsible for this
advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with
respect to any future matter. We welcome the opportunity to discuss
your particular case. All communications will be treated in a
confidential manner.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello,
Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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