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Gemini Space Station is facing a proposed class-action lawsuit in New York after investors accused the crypto exchange of giving incomplete information before and after its 2025 initial public offering. The complaint was filed in the US District Court for the Southern District of New York and names the company, co-founders Tyler and Cameron Winklevoss, and other executives.
Plaintiffs claim Gemini’s public filings presented a company focused on user growth and overseas expansion, while later actions pointed to a different plan. The proposed class covers investors who bought shares between the September 2025 IPO and mid-February 2026.
The lawsuit argues that Gemini’s IPO documents described the company as a growing crypto platform seeking to expand its monthly transacting users and widen its international reach. Investors claim those filings did not clearly describe an internal plan to change the business model after the listing. They also argue that later public statements did not fully explain how the shift would reshape operations.
In early February, Gemini announced “Gemini 2.0,” a strategy centered more heavily on prediction markets. At nearly the same time, the company disclosed plans to cut about 25% of its workforce and leave the UK, European Union, and Australian markets. Plaintiffs say those moves did not match earlier messages about expansion into overseas regions.
The complaint also refers to November statements that Gemini remained committed to growth in “key global markets.” Investors argue that such remarks supported expectations that the company would continue building its international business. The court filing now asks whether those disclosures gave shareholders a full account of Gemini’s intended direction.
Gemini priced its IPO at $28 per share in September 2025 and closed its first trading day at $32. The stock later climbed to $40 before falling sharply over the following months. By March 2026, shares dropped 84.41%, trading near a low of $5.82 on March 24.
Plaintiffs are seeking damages for investors who bought shares at what the complaint describes as “artificially inflated prices.” They argue that confidence weakened as the company revealed its new strategy, job cuts, and retreat from several foreign markets. The filing links those developments to the steep drop in the share price after the public debut.
Analyst actions added more pressure. Before the latest earnings report, Citigroup downgraded Gemini from “Neutral” to “Sell” and cut its price target from $13 to $5.50. Another Wall Street analyst also reduced the company’s price target, adding to the negative tone around the stock.
Gemini’s latest financial results showed stronger revenue but deeper losses. Fourth-quarter revenue rose 39% year over year to $60.3 million, above analyst expectations of $51.7 million. However, quarterly net loss widened to $140.8 million from $27 million a year earlier. For full-year 2025, Gemini reported a net loss of $582.8 million, compared with $158.5 million in 2024.
The company also reduced staff during 2026. In a shareholder letter, Tyler and Cameron Winklevoss wrote that workforce cuts had reached about 30% since the start of the year. The lawsuit presents those reductions as part of a broader reset following the post-IPO change in strategy.
The filing also points to the exits of the chief financial officer, chief operating officer, and chief legal officer in February. Investors cite those departures as another sign of strain during the restructuring period. The case now centers on whether the company’s IPO materials and later updates gave investors a clear picture of its business plans.
Also Read: SEC Ends Gemini Earn Lawsuit After 100% In-Kind Crypto Repayment
