Genius Group Files $250 Million Securities Class Action Against Citadel Securities and Virtu Financial, Alleges Three-Year Manipulation Scheme
Lawsuit Claims Market Manipulation on 98% of Trading Days During Three-Year Period
Genius Group Limited (NYSE:GNS) has taken an assertive legal step, filing a Federal Securities Class Action Complaint against Citadel Securities LLC and Virtu Americas LLC. The complaint, announced November 14, 2025, in the Southern District of New York, alleges a prolonged scheme of market manipulation including spoofing and naked short selling of GNS shares. The company seeks at least $250 million in damages for itself and its shareholders, claiming that nearly every trading day over the past three years has been affected.
Details Reveal Aggressive Trading Patterns and Systemic Practices
The suit details that from April 12, 2022 through May 30, 2025, the defendants allegedly engaged in widespread manipulative trading—particularly spoofing—where large volumes of buy or sell orders are quickly cancelled to give a false sense of market activity. On 98% of trading days in this period, defendants reportedly placed thousands of these "baiting" orders, most of which were canceled in under 100 milliseconds. This pattern, Genius Group claims, created artificial supply, volatility, and downward pressure on the GNS share price. The company also points to significant instances of naked short selling—selling shares that weren't available for delivery—compounding the pressure on the stock.
| Key Allegation | Reported Frequency | Timeframe |
|---|---|---|
| Spoofing trades entered and quickly cancelled | 98% of trading days | April 12, 2022 – May 30, 2025 |
| Naked short selling | Major declines coincided with spikes | During alleged class period |
| Total damages sought | At least $250 million | |
Shareholder Protection Takes Center Stage as Company Seeks Recovery
Genius Group aims to represent all shareholders who sold stock at what it claims were artificially deflated prices. The company has applied to serve as lead plaintiff, hoping to steer the litigation and prioritize shareholder interests. CEO Roger James Hamilton emphasized the company’s dedication to fair markets, calling the lawsuit a key milestone in an ongoing battle against what he describes as persistent, unfair trading practices.
The press release further notes that some brokers continue to restrict purchases of GNS shares, which the company believes further impedes a fair market environment for its stock. Shareholders are reminded of a November 28, 2025 record date to transfer shares via the Direct Registration System to participate in a Bitcoin Loyalty Payment program aimed at discouraging future short selling.
Genius Group Signals Proactive Approach Amid Uncertain Legal Outcomes
The class action, covering a period of substantial volatility, aims to set legal precedents for shareholder protection. However, as with any litigation, outcomes are uncertain. Genius Group states it will provide regular updates to shareholders and reiterates its commitment to ongoing, forceful action against manipulative trading.
Key Metrics and Reminders for Investors
| Metric | Value | Date/Status |
|---|---|---|
| GNS Stock Price (as of 10:36 AM) | $0.97 | Nov 14, 2025 |
| Class Action Coverage | April 12, 2022 – May 30, 2025 | Ongoing |
| Record Date for DRS Transfer | Nov 28, 2025 | Upcoming |
Investors watching GNS should note the scale and scope of these legal efforts as well as the potential impacts—both on shareholder confidence and on the evolving regulatory landscape around trading practices in small-cap stocks. The outcomes here could set meaningful precedents for other issuers navigating alleged manipulation.
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