Company Announcements

Important Notice Regarding AllegedCrypto Platform Viability Misrepresentations

NEW YORK , April 30, 2026 /PRNewswire/ -- SueWallSt notifies investors in Gemini Space Station, Inc. (NASDAQ: GEMI) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between September 12, 2025 and February 17, 2026. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

GEMI shares were sold to IPO investors at $28.00 each. By February 17, 2026, the stock had collapsed to $6.585, a loss of $21.415 per share, or over 76%. The lead plaintiff deadline is May 18, 2026.

The AllegedCrypto Platform Viability Problem

The cryptocurrency exchange sector attracted enormous investor capital in 2025, with global crypto market capitalization exceeding $3.0 trillion. Gemini raised nearly $400 million from IPO investors by positioning itself as a regulated crypto exchange "predominantly focused on expanding [its] exchange platform via increased MTUs[.]" The lawsuit contends that this portrayal masked an impending wholesale abandonment of the very business model investors were buying into.

Just five months after the IPO, the Company announced "Gemini 2.0," a pivot placing prediction markets and event contracts "front and center" while simultaneously exiting three major international regions and cutting 25% of its workforce.

How the Alleged Pivot Affected Shareholders

The complaint alleges that the Offering Documents described a company whose core product was a cryptocurrency exchange generating over 63% of revenue from exchange transaction fees. The lawsuit asserts that management failed to disclose a non-speculative risk that this core business was insufficient to sustain growth, creating the conditions for an expensive restructuring.

• The Offering Documents represented Gemini was "predominantly focused" on expanding its exchange platform through increased users and trading volume
• Exchange revenue comprised 63.8% of total revenue in H1 2025, with approximately 95% from retail investors
• Management projected MTU growth at a 20% to 25% compound rate over the medium term
• Prediction markets and event contracts received only passing mention in the Offering Documents, appearing just twice
• The Company raised $398.4 million from IPO investors based on the crypto exchange business model
• Preliminary FY2025 operating expenses reached $520M to $530M, a 40% year-over-year increase attributed to personnel-related costs

The Cryptocurrency Exchange Revenue Concentration Factor

The action contends that Gemini's heavy dependence on exchange transaction fees from retail crypto traders made the business vulnerable to shifts in crypto market conditions. When the Company abruptly announced its pivot to prediction markets, exited the UK, EU, and Australian markets, and slashed headcount, the lawsuit alleges that investors learned for the first time that the growth strategy they had funded was not viable as presented.

Submit your information to join this case  or call Joseph E. Levi, Esq. at (888) SueWallSt.

"This case presents important questions about platform viability disclosure obligations in the cryptocurrency sector. When a company raises hundreds of millions from public investors based on one business model, shareholders deserve to know if that model is about to be fundamentally changed." -- Joseph E. Levi, Esq.

Applications to serve as lead plaintiff must be filed by May 18, 2026.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171

View original content to download multimedia:https://www.prnewswire.com/news-releases/gemi-lawsuit-alleges-company-allegedly-concealed-disruptive-business-pivot---gemini-space-station-investors-face-losses-following-company-allegedly-concealed-disruptive-business-pivot-suewallst-302758324.html

SOURCE SueWallSt.com