Gemini sued over post-IPO strategy shift, declining stock price
Crypto exchange Gemini is facing a class-action lawsuit over what a complaint alleges is an “abrupt corporate pivot to a prediction-market-centric business model” after its IPO.
Gemini has been hit with a proposed class action in New York for allegedly misleading investors during and after the crypto exchange’s September initial public offering.
The class action lawsuit filed by shareholders on Thursday in a Manhattan federal court against Gemini, its co-founders Tyler and Cameron Winklevoss, and company executives, claims they made misleading statements in the company’s IPO documents.
Plaintiff Marc Methvin claimed that the documents portrayed Gemini as a growing crypto exchange focused on expanding its user base and international footprint, but made an “abrupt corporate pivot to a prediction-market-centric business model.”