Gemini Space Station Faces Class Action After 8.72% and 12.9% Stock Drops
A class action has been filed on behalf of investors who bought Gemini Space Station shares in its September 12, 2025 IPO or acquired stock through February 17, 2026, alleging overstatements of its crypto platform viability and international expansion prospects. After announcing its “Gemini 2.0” pivot on February 5 that cut 25% of its workforce and exited UK, EU and Australian markets, shares fell 8.72%, and a February 17 disclosure of COO, CFO and CLO departures with preliminary 2025 results of $165–$175 million in net revenue against $520–$530 million in expenses triggered a further 12.9% decline.
1. Class action complaint details
A securities class action has been filed on behalf of all investors who purchased Gemini Space Station Class A common stock in its September 12, 2025 IPO or acquired shares through February 17, 2026. The complaint alleges that the company overstated the viability of its core crypto platform and its commitment to international growth in its offering documents.
2. Gemini 2.0 pivot and initial stock reaction
On February 5 the company announced its Gemini 2.0 corporate pivot, which shifted focus to its prediction market, cut workforce by 25%, and withdrew from the United Kingdom, European Union and Australian markets. Shares fell 8.72% to close at $6.70 per share following this announcement.
3. Executive departures and preliminary financial estimates
On February 17 Gemini disclosed the departures of its COO, CFO and chief legal officer, and provided preliminary unaudited estimates for fiscal 2025 net revenue of $165–$175 million against operating expenses of $520–$530 million, a 40% year-over-year increase. The stock dropped 12.9% to close at $6.585 per share on that day.
4. Lead plaintiff deadline and eligibility
Investors who purchased shares in the IPO or acquired them through February 17, 2026 may submit papers to serve as lead plaintiff by May 18, 2026. Representation is offered on a contingency fee basis, with no fees or expenses for absent class members.