Gemini, Winklevoss Twins Sued By Investors For 'False' IPO Claims, Operational Shifts — Crypto Exchange's Q4 Loss Deepens - Benzinga
Shareholders filed a class action lawsuit against Gemini Space Station, Inc. (NASDAQ:GEMI) and the Winklevoss brothers on Wednesday, alleging that the company misled investors in relation to its Initial Public Offering.
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‘False, Misleading Statements’
The lawsuit claimed that Gemini failed to disclose several key issues in the documents supporting its IPO, according to San Diego-based plaintiffs’ law firm Robbins LLP. These include overstating the viability of its core business as a cryptocurrency platform and its international expansion.
The lawsuit also alleged that the company’s post-IPO financial and business prospects were overstated. The plaintiffs stated that the offering documents and public statements made by co-founders, Tyler and Cameron Winklevoss, were “materially false and misleading.”
The shareholders pointed to a blog post by the Winklevoss twins dated Feb. 5, announcing a pivot to “Gemini 2.0,” including operational shifts and a 25% workforce reduction.
Gemini didn’t immediately return Benzinga’s request for comment.
Gemini’s Loss Widens In Q4
Cryptocurrency exchange Gemini went public last September, only to watch its stock nosedive 81% in the months since.
The company released its fourth-quarter financial results on Thursday, posting a per-share loss of $1.22 that fell short of analyst...
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