Gemini is facing a proposed class-action lawsuit in New York, with investors alleging the firm misled them following its September IPO. The complaint targets the company, its co-founders Tyler Winklevoss and Cameron Winklevoss, along with senior executives.
According to the lawsuit, Gemini initially presented itself as a growth-focused crypto exchange expanding globally. However, plaintiffs claim the firm abruptly pivoted to a prediction-market-focused model, branded “Gemini 2.0,” shortly after going public. The shift reportedly included exiting key international markets and cutting 25% of its workforce.
Gemini shares debuted at $28 on the Nasdaq, briefly rising to $40 before plunging more than 80% to around $6. Investors allege they purchased shares at “artificially inflated prices” and are seeking damages.
The complaint also highlights executive departures and rising operating costs, which it says contributed to the stock’s decline. Despite the turmoil, Gemini recently reported stronger-than-expected quarterly revenue growth.
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