GEMI Investor Alert: Gemini Space Station Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Misled Institutional Holders: Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK, May 11, 2026 (GLOBE NEWSWIRE) -- Institutional investors holding positions in Gemini Space Station, Inc. (NASDAQ: GEMI) during the Class Period of September 12, 2025 through February 17, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

GEMI shares were offered to the public at $28.00 in the Company's September 2025 IPO, raising nearly $400 million. By February 17, 2026, shares had fallen to $6.585, representing a loss of approximately $21.42 per share, or over 76%. The Court has set May 18, 2026 as the deadline to apply for lead plaintiff appointment.

Notice to Institutional Holders

Pension funds, mutual funds, and asset managers that acquired GEMI shares during the Class Period should assess whether fiduciary obligations require evaluation of recovery options. A securities class action has been commenced alleging that the Company and certain officers made materially misleading statements about Gemini's business strategy and international growth plans, while allegedly concealing an imminent pivot away from its core cryptocurrency exchange model.

Fiduciary Obligations and Recovery Options

Institutional fiduciaries owe duties of prudence and loyalty to plan participants and beneficiaries. Where portfolio holdings have suffered losses due to alleged securities fraud, fiduciaries should consider whether participation in the recovery process is warranted. Key considerations include:

Gemini raised approximately $398.4 million from IPO investors based on representations that its core crypto exchange would drive growth through international expansion and increased monthly transacting users
The Company subsequently exited the United Kingdom, European Union, and Australian markets, contradicting representations made in the Offering Documents
Within months of the IPO Gemini had a 25% workforce reduction followed by the departure of three senior executives
Preliminary fiscal year 2025 operating expenses of $520 million to $530 million reflected an approximate 40% year-over-year increase, attributed to personnel-related costs
Multiple analyst firms downgraded GEMI and slashed price targets by as much as 57% following the corrective disclosures

Portfolio Impact Assessment

The lawsuit contends that Gemini's Offering Documents and Class Period statements overstated the viability of its crypto platform, overstated the Company's commitment to international growth, and failed to disclose the significant risk of a costly corporate restructuring. The corrective disclosures on February 5 and February 17, 2026 allegedly removed artificial inflation from the stock price, causing substantial portfolio losses for institutional holders.

"Institutional investors play a critical role in securities class actions. Their participation helps ensure that the class is effectively represented and that recovery is maximized for all shareholders who were harmed by alleged misrepresentations." -- Joseph E. Levi, Esq.

Case Summary

The action asserts claims under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act, alleging that Gemini's public statements concealed a looming pivot to a prediction-market-centric business model branded "Gemini 2.0." Institutional investors need not have sold their positions to participate in the recovery.

Request an institutional investor loss assessment or contact Joseph E. Levi, Esq. at (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

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