Lawsuit alleges Gemini Space Station IPO disclosures concealed pivot to prediction markets and executive turnover; lead plaintiff deadline May 18

National shareholder rights law firm Hagens Berman said it has filed a securities class action lawsuit against Gemini Space Station, Inc. (NASDAQ: GEMI) and several of its top executives, including founders Cameron and Tyler Winklevoss. The litigation follows disclosures that, according to the firm, have left Gemini’s stock trading more than 75% below its initial public offering (IPO) price.

The firm is urging investors who purchased Gemini securities and suffered losses to consider their options, including the deadline to seek appointment as Lead Plaintiff.

Lawsuit details and class period

The case, Methvin v. Gemini Space Station, Inc., et al., No. 1:26-cv-02261, was filed in the U.S. District Court for the Southern District of New York.

The lawsuit seeks to recover losses for persons and entities that purchased or otherwise acquired Gemini common stock pursuant to and/or traceable to the company’s September 12, 2025 IPO, and/or Gemini securities between September 12, 2025, and February 17, 2026, inclusive.

Allegations: “Gemini 2.0” pivot and executive turmoil

According to the complaint, Gemini made material misstatements and omitted critical information, including in its IPO materials. The firm’s summary of the allegations includes:

• Overstated viability: Gemini allegedly overstated the viability of its core cryptocurrency exchange platform and its ability to scale international operations as a foundation for sustained growth.
• Abrupt pivot: On February 5, 2026, Gemini announced a corporate pivot to “Gemini 2.0,” including a shift in focus to prediction markets, exit from the United Kingdom and Australia, and a reduction in workforce by 25%.
• Mass executive exodus: On February 17, 2026, Gemini announced the simultaneous “parting of ways” with its COO (Marshall Beard), CFO (Dan Chen), and Chief Legal Officer (Tyler Meade), less than six months after the IPO.

Market impact cited by the firm

Hagens Berman said that following these disclosures and Gemini’s projected $602 million net loss for 2025, Gemini’s stock price fell to below $7.00 per share—more than a 75% decline from the $28.00 IPO price.

Lead Plaintiff deadline

Investors who purchased Gemini common stock in or traceable to the September 2025 IPO, or during the class period, have until May 18, 2026 to ask the Court to appoint them as Lead Plaintiff.

Whistleblower information

The firm also said persons with non-public information regarding Gemini should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the program described by the firm, whistleblowers who provide original information may receive rewards totaling up to 30% of any successful recovery made by the SEC.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focused on corporate accountability. The firm said it has secured more than $2.9 billion in this area of law.