Crypto exchange Gemini is facing a class action lawsuit from shareholders who claim the company illegally failed to disclose its pivot into prediction markets—and overstated the viability of its struggling core business.
Gemini “overstated the viability of its core business as a crypto platform” and “overstated its commitment to and/or the viability of growing its business through expanding its international operations,” the lawsuit claims.
Gemini did not immediately respond to Decrypt’s request for comment on the case.
Since Gemini went public six months ago, the company’s stock (Nasdaq: GEMI) has lost nearly 85% of its value. In the same period, Bitcoin has shed some 40% of its price. Gemini shareholders insist the damage to Gemini’s stock has much to do with the company’s alleged failure to disclose the state of its businesses and its future plans.
“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, Plaintiff and other class members have suffered significant losses and damages,” the complaint reads.
Gemini’s stock is down 5.8% on the day Friday, as of this writing, to $5.66.
