Gemini Faces Class Action Lawsuit Alleging Misleading or Incomplete Disclosures Around Its IPO

BlockBeats News, March 20th, according to The Block, Gemini is facing a class-action lawsuit, which was filed in the Southern District of New York federal court this Wednesday. The complaint accuses Gemini and its co-founders Tyler Winklevoss and Cameron Winklevoss of making false or incomplete statements about the company's business strategy in the lead-up to and following its September 2025 IPO, seeking damages on behalf of investors who bought the stock between the IPO and mid-February 2026.

Gemini went public on Nasdaq in September 2025, closing at $32 on its first day and has since dropped over 80%, closing at $6.01 on Thursday. The plaintiffs claim that the offering portrayed Gemini as a growth-oriented crypto platform focused on expanding its monthly active user base and international market, without disclosing its preparation for a significant strategic shift.

In early February this year, Gemini unveiled its "Gemini 2.0" strategy, announcing a shift towards prediction market products, a workforce reduction of about 25%, and an exit from markets such as the UK, EU, and Australia — a stark departure from its previous emphasis on international expansion. The complaint also cites the departures of several executives, including the CFO, COO, and CLO, as evidence of internal turmoil at the company.