Genius Group sues for $450 million under RICO Act

SINGAPORE - Genius Group Limited (NYSE American: GNS), a global AI and Bitcoin-focused education company currently trading at $0.23 with a market capitalization of $15.8 million, has filed a lawsuit seeking over $450 million in damages against Peter Ritz and Michael Moe, controllers of LZGI International, Inc. According to InvestingPro data, the company’s financial health score is currently rated as WEAK, with rapidly declining cash reserves. The suit, lodged under the Racketeer Influenced and Corrupt Organizations Act (RICO), was filed in the United States District Court, Southern District of Florida on March 31, 2025.

The complaint alleges that the defendants engaged in a pattern of mail and wire fraud, extortion, and other illegal activities aimed at defrauding LZGI and Genius Group shareholders. It accuses the defendants of using LZGI as a vehicle to coerce and extort insiders of microcap companies, with Genius Group cited as their latest target. The legal challenges come as the company faces significant financial headwinds, with revenue declining 34.5% in the last twelve months and analysts forecasting further sales decline this year.

According to the lawsuit, the defendants attempted to fraudulently induce Genius Group into an asset purchase agreement with false representations and warranties. When their initial plan failed, they allegedly tried to gain control of the company through an illegal boardroom coup. The company claims that Peter Ritz detailed his scheme to weaponize the US legal process, obtaining a court-ordered ban to prevent Genius Group from issuing shares and raising funds, subsequently threatening the company with bankruptcy.

The legal action by Genius Group includes a demand for a jury trial and seeks no less than $150 million in monetary damages, which could amount to a minimum of $450 million in treble damages under Florida statute. The case, represented by the Basile Law Firm P.C., is numbered 1:25-cv-21496.

This RICO complaint is part of a series of legal measures taken by Genius Group against fraud and market manipulation. It is separate from another lawsuit related to alleged naked short selling and spoofing of Genius Group’s shares, led by Christian Attar, with damages previously estimated between $251 million and $263 million.

Genius Group, which serves 5.4 million users in over 100 countries, is known for its AI-powered education and acceleration solutions. The information in this article is based on a press release statement from Genius Group. InvestingPro analysis indicates the stock is currently trading below its Fair Value, while showing concerning trends with a 94.7% price decline over the past year. For deeper insights into GNS and 1,400+ other stocks, including comprehensive financial health analysis and expert recommendations, consider accessing the full Pro Research Report on InvestingPro.

In other recent news, Genius Group Limited has faced significant legal challenges that have impacted its financial operations. The company is set to downsize its Bitcoin Treasury due to legal constraints, reducing its holdings from 440 to 430 Bitcoin to maintain liquidity. This decision comes as a result of legal actions that have prevented the firm from raising funds or issuing shares. Additionally, Genius Group has launched a rights offering aimed at strengthening its investment in Bitcoin, with all net proceeds intended for the purchase of the cryptocurrency. This move aligns with their Bitcoin-first strategy, which has seen them commit a substantial portion of their reserves to Bitcoin.

Furthermore, Genius Group has expanded its Bitcoin Treasury with a $5 million purchase, bringing its total investment to $40 million. This acquisition is part of their strategy to reach an initial target of $120 million in Bitcoin holdings. Meanwhile, LZG International has updated its shareholders on an Asset Purchase Agreement with Genius Group, though details remain sparse. This agreement could potentially influence LZG International’s operations and market presence. These developments reflect ongoing efforts by both companies to navigate complex financial and strategic landscapes.

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