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SINGAPORE - Genius Group Limited (NYSE American: GNS), an AI and Bitcoin-focused education provider with a market capitalization of $27.18 million, has filed an amended RICO lawsuit seeking over $750 million in damages. According to InvestingPro data, the company’s stock has experienced significant volatility, falling 88% over the past year, though analysis suggests the stock may be undervalued at current levels. The suit, lodged in the United States District Court, Southern District of Florida, targets Peter Ritz and Michael Moe, the controlling officers of LZGI International, Inc. The amended complaint, which now includes defendants Michael Carter and John Clayton, relates to alleged attempts to defraud Genius Group and obstruct its operations.
The legal action follows a recent ruling by the United States Court of Appeals for the Second Circuit on May 6, 2025, which granted a stay on a Preliminary Injunction (PI) against the Company. The decision allows Genius Group to resume raising funds, selling shares, buying Bitcoin, and funding its growth plans pending the appeal’s resolution. While the company maintains a healthy liquidity position with a current ratio of 3.65, InvestingPro analysis indicates challenges with cash burn rates and profitability metrics. The Company alleges that the defendants’ actions, including the filing of false statements, led to the issuance of the PI and a Temporary Restraining Order (TRO), causing significant financial damage estimated at $250 million, now seeking treble damages.
The Company’s legal efforts are led by attorneys Mark R. Basile, Esq. and Alyssa Feldman, Esq. of the Basile Law Firm P.C. In addition to the RICO case, Genius Group is cooperating with LZGI shareholders in class action and derivative lawsuits against LZGI, Ritz, and Moe for federal securities law violations.
Moreover, Genius Group has successfully recovered and secured CEO Roger Hamilton’s hacked X account on May 20, 2025, and is investigating any connections between this criminal activity and its ongoing legal battles.
This announcement follows the Company’s April 4, 2025, press release and is part of its broader efforts to recover damages and restructure following the legal disruptions. Genius Group is known for its "Genius City" model and online marketplace, offering AI-powered education to over 5.8 million users across more than 100 countries. Despite current challenges, analysts project revenue growth of 230% for FY2025. For deeper insights into Genius Group’s financial health and growth prospects, including 16 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
The information in this article is based on a press release statement from Genius Group Limited.
In other recent news, Genius Group Limited has announced a share buyback program approved by 97.5% of its shareholders, allowing the company to repurchase up to 20% of its shares. This decision comes in the midst of legal challenges, including a Preliminary Injunction from the U.S. District Court Southern District of New York, which has restricted the company’s ability to issue shares as part of its employee compensation plan. In response, the company will provide cash payments to employees, who may then purchase shares on the open market. Additionally, Genius Group has filed a lawsuit seeking over $450 million in damages under the RICO Act against Peter Ritz and Michael Moe, alleging fraudulent activities aimed at defrauding the company and its shareholders. The lawsuit, filed in the United States District Court, Southern District of Florida, accuses the defendants of using LZGI International, Inc. as a vehicle for coercion and extortion.
Furthermore, Genius Group is downsizing its Bitcoin Treasury from 440 to 430 Bitcoins to maintain liquidity amid legal constraints that prevent the company from raising funds or issuing shares. The company has also filed an emergency motion with the United States Court of Appeals for the Second Circuit to vacate the preliminary injunction. These developments are part of Genius Group’s broader efforts to address allegations of fraud and market manipulation, while the company continues to advocate for Bitcoin’s transparency as a safeguard against fraud.
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