Gemini faces a proposed class-action lawsuit in Manhattan federal court, accused of misleading investors during its September IPO. The complaint, filed by shareholder Marc Methvin, alleges the crypto exchange portrayed itself as a growing platform expanding globally-only to abruptly pivot to prediction markets in early February under a new “Gemini 2.0” strategy.
The IPO priced shares at $28 on Nasdaq. After briefly reaching $40, the stock has since crashed over 80%, trading near $6 amid leadership exits and international retreats.
In February, Gemini announced it would exit the EU, UK, and Australia and cut 25% of its workforce. Days later, its CFO, COO, and general counsel resigned. Operating expenses reportedly rose 40% even as the core exchange was sidelined.
Plaintiffs claim these undisclosed shifts caused artificial inflation in early share prices and seek damages for investor losses. Despite reporting Q4 revenue of $60.3 million-beating estimates-the stock remains near all-time lows.