Genius Group Limited investors have joined a federal securities class action lawsuit alleging that Citadel Securities LLC and Virtu Americas LLC engaged in a long-running market manipulation scheme that artificially deflated the company’s stock price. This legal battle directly impacts rights holders, executives, and investors in the AI-powered education sector by challenging high-frequency trading practices like spoofing and naked short selling that violate federal securities laws.
Alleged Manipulation Scheme Targets Stock Value
The complaint, filed on June 29, 2026 in the United States District Court for the Southern District of Florida, names Aron Reynolds as the Lead Plaintiff representing all similarly situated investors. The lawsuit alleges that Citadel Securities and Virtu Americas violated Section 10(b), Sections 9(a)(2) and 9(e), and Section 20(a) of the Securities Exchange Act of 1934 through manipulative trading practices. These practices specifically include spoofing and naked short selling of Genius Group shares, which the plaintiffs claim were designed to artificially deflate the stock price during the Class Period from April 12, 2022 to May 30, 2025.
Investors Seek Damages for Deflated Prices
This class action complaint is filed on behalf of the Company and all investors who sold Genius Group stock at artificially deflated prices resulting from the defendants’ alleged abuses. The legal action seeks to recover damages caused by the alleged market manipulation scheme. Investors who sold Genius securities during the Class Period are members of the proposed class and may be entitled to compensation without out-of-pocket fees under a contingency fee arrangement. Those wishing to serve as lead plaintiff must move the Court by no later than August 28, 2026, though serving as lead plaintiff is not required to share in any potential recovery.
The company has previously reminded shareholders of the record date of November 28, 2025 to transfer shares via the Direct Registration System to benefit from the Bitcoin Loyalty Payment program, which aims to reduce shares available to short sellers. Multiple law firms, including Bronstein, Gewirtz & Grossman LLC and Rosen Law Firm, have encouraged investors to secure counsel before the important deadline to join this securities class action against Citadel Securities and Virtu Americas.
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