TL;DR

Gemini faces a class action alleging investors were misled before and after its September 2025 IPO about business strength, growth prospects and strategy.
The complaint says offering documents omitted a shift toward prediction markets that later surfaced through Gemini 2.0, layoffs, market exits and executive departures.
After February disclosures, shares sank below $7, while Gemini reported a full-year net loss of $582.8 million and sought to defend its reset.

Gemini’s post-IPO troubles have now hardened into a securities fight that reaches back to its debut. The lawsuit says investors were sold a story that began breaking almost immediately. A proposed class action filed in Manhattan court alleges Gemini and co-founders Cameron and Tyler Winklevoss misled shareholders in and after the September 2025 IPO by overstating the strength of the exchange business and its prospects. Plaintiffs also say investors were not told the company was nearing a sudden pivot toward prediction markets, a change that later collided with losses, layoffs and departures.

What the Complaint Says Changed After the IPO

At the center of the suit is a timing dispute. Plaintiffs argue Gemini’s strategic turn was not a shock, but a risk investors should have been told about before buying in. Court filings say the August 2025 registration statement and September offering documents did not disclose any plan to prioritize prediction markets, even though that focus later became central to the “Gemini 2.0” restructuring. The complaint also revisits the IPO itself, where Gemini issued 15,178,572 Class A shares at $28 each, raising about $398.4 million in proceeds before expenses for the company.

The alleged unraveling came in stages. February’s disclosures are portrayed as the moment the market finally saw the reset in full. On February 5, Gemini said prediction markets would become more front and center, that it would cut 25% of its workforce, and that it would exit the UK, EU and Australian markets. The complaint says the stock fell 8.72% that day to close at $6.70. Then, on February 17, Gemini disclosed executive departures and a potential $602 million net loss for 2025, developments that pushed the shares below $7 and deepened investor alarm.

The case now turns a bruising operating stretch into a legal one. What investors are contesting is whether Gemini’s credibility broke before markets had fair chance to price the risk. The complaint seeks damages for shareholders who bought between September 12, 2025 and February 17, 2026, alleging the defendants intended to and did deceive the investing public. Gemini did not respond to Reuters’ request for comment. After market close, the company reported a full-year net loss of $582.8 million, while the stock finished Thursday at $6.01 before rising 11% after hours to $6.67.

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Filed under: News - @ March 20, 2026 3:21 pm