Genius Group Ltd (AMEX:GNS) jumped 17% in premarket trading on Monday after the ed-tech company, which incorporates AI into its platform, revealed that it has filed a class-action lawsuit accusing two major market-making firms of manipulating its stock.
The complaint—submitted in the U.S. District Court for the Southern District of New York—alleges that Citadel Securities LLC and Virtu Americas LLC engaged in illegal trading practices, including “spoofing” and naked short selling, in violation of several provisions of the Securities Exchange Act of 1934. Genius Group is seeking no less than $250 million in damages.
According to the filing, the alleged misconduct spanned from April 12, 2022, through May 30, 2025. During this time, the defendants allegedly carried out thousands of spoof orders on 98% of trading days, activity the company says created misleading signals of excess supply and artificial volatility in its shares.
“We have been consistent in calling for fair markets and taking actions to protect our shareholders,” said Roger James Hamilton, CEO of Genius Group. “The filing of this lawsuit is an important milestone for the company in what has been a long, multi-year fight to protect the company and its shareholders and expose unfair and illegal practices that our investors have dealt with.”
Genius Group said the legal action is being brought on behalf of both the company and investors who sold shares at what it alleges were artificially depressed prices. The firm plans to request that the court appoint it as lead plaintiff to oversee the case.