December 04, 2015 (Shareholders Foundation) - An investigation on behalf of investors of Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) shares over potential securities laws violations by Irsa Inversiones y Rprsntcins SA and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) concerning whether a series of statements by Irsa Inversiones y Rprsntcins regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Irsa Inversiones y Rprsntcins SA reported that its Total Revenue rose from $183.84 million for the 12 months period that ended on June 30, 2012 to $292.16 million for the 12 months period that ended on June 30, 2014 while its Net income of $20.94 for the 12 months period that ended on June 30, 2012 declined to a Net Loss of $80.76 million for the 12 months period that ended on June 30, 2014.


On November 19, 2015, Spruce Point Capital Management published a report on Irsa Inversiones y Rprsntcins SA alleging, among other things, that Irsa Inversiones y Rprsntcins SA is keeping ~$7 billion of net debt off its books by not consolidating its controlling investment in Israel's IDB Development Corp, and that Irsa Inversiones y Rprsntcins SA may therefore be in violation of its debt covenant under its existing US$300m Global Bond indenture that requires it to maintain an EBITDA/Interest coverage of 1.75x.

Shares of Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) declined to as low as $13.14 per share on December 4, 2015.