Investor Firms Step Up DeFi Technologies Class Action as Lead‑Plaintiff Deadline Nears
Plaintiffs accuse the company of masking setbacks in a core arbitrage strategy, making 2025 guidance unattainable.
Overview
- Investors who bought DeFi Technologies shares between May 12 and November 14, 2025 face a January 30, 2026 deadline to seek lead‑plaintiff status.
- The complaint alleges delayed execution of the DeFi Alpha arbitrage strategy, understated competition from digital asset treasury firms, and an increased likelihood that 2025 revenue guidance would be missed.
- November disclosures cited constrained arbitrage opportunities and a Q3 revenue decline of nearly 20%, with full‑year guidance cut to about $116.6 million from $218.6 million and CEO Newton shifting to an advisory role.
- Following those disclosures, the stock fell 7.43% on November 6 and a further 27.59% over the next two sessions after November 14.
- The case is pending in the Eastern District of New York, with firms including DJS Law Group, The Gross Law Firm, Levi & Korsinsky, Faruqi & Faruqi, and The Law Offices of Frank R. Cruz soliciting shareholders, and some notices citing alleged violations of Sections 10(b), 20(a), and Rule 10b‑5.