Core Viewpoint - The complaint against DeFi Technologies alleges violations of federal securities laws due to misleading statements and failure to disclose critical operational challenges impacting revenue forecasts and business performance [2]. Group 1: Allegations and Impact - DeFi Technologies faced delays in executing its DeFi arbitrage strategy, a key revenue driver, which was not disclosed to investors [2]. - The company understated the competition from other Digital Asset Trading (DAT) companies, which negatively affected its ability to execute its arbitrage strategy [2]. - As a result of these issues, DeFi Technologies was unlikely to meet its previously issued revenue guidance for fiscal year 2025 [2]. - The company downplayed the severity of the negative impacts on its business and financial results, leading to materially false and misleading public statements [2]. Group 2: Financial Disclosures and Market Reaction - On November 6, 2025, DeFi Technologies reported a significant decline in arbitrage opportunities, causing its stock price to drop by $0.13 per share, or 7.43%, closing at $1.62 [3]. - Following the third-quarter financial results released on November 14, 2025, which showed a nearly 20% revenue decline and a lowered revenue forecast from $218.6 million to approximately $116.6 million, the stock price fell by $0.40 per share, or 27.59%, closing at $1.05 [4][5]. - The revenue reduction was attributed to delays in executing DeFi Alpha arbitrage opportunities due to increased competition and market consolidation [4].
SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi Reminds DeFi Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of January 30, 2026
Prnewswire·2026-01-01 14:06