Federal Court Rules in Favor of Genius Group, Denying All Motions to Dismiss in RICO Lawsuit

Rhea-AI Summary

Key Figures

Treble damages sought: Over $750 million Ruling date: September 27, 2026

Treble damages sought

Over $750 million

Amount sought in the lawsuit; the article reports a ruling on dismissal motions, not a damages award.

Ruling date

September 27, 2026

District court denied all defendants’ motions to dismiss.

Historical Context

2 past events · Latest: Sep 28

2 events

1. Sep 28

   ICC arbitration award

   24h Move

   -4.6%

   Company reported final ICC award of $7.97 million and return of 7.4 million shares.

2. Sep 02

   injunction vacatur

   24h Move

   -4.2%

   Second Circuit vacated injunction restricting share issuance, capital raising, and Bitcoin purchases.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

rico, treble damages, motions to dismiss, preliminary injunction

4 terms

rico regulatory

"Racketeer Influenced and Corrupt Organizations Act (“RICO”) claims to proceed"

A U.S. federal law (Racketeer Influenced and Corrupt Organizations Act) that lets prosecutors and private parties pursue criminal and civil cases against individuals or groups accused of running a pattern of illegal activity through an “enterprise.” Think of it as a charge that alleges not just a single wrongdoing but an organized, ongoing criminal scheme. It matters to investors because RICO claims can signal alleged long‑term fraud or corruption that may lead to heavy penalties, asset loss, reputational damage, and material harm to a company’s finances.

treble damages regulatory

"seeking treble damages of over $750 million"

Treble damages are a court-ordered award equal to three times the amount of actual monetary harm, intended to punish wrongdoing and deter future misconduct. For investors, treble damages can multiply a company’s legal liability like being billed three times for the same mistake, potentially reducing cash available for operations, hurting profitability, increasing the risk of large settlements or bankruptcy, and putting downward pressure on the stock.

motions to dismiss regulatory

"denies motions to dismiss filed by all defendants"

A motion to dismiss is a pretrial court filing by a defendant asking the judge to throw out all or part of a plaintiff's complaint because it fails on legal grounds, such as not alleging facts that, even if true, would establish a valid claim, lack of subject‑matter or personal jurisdiction, improper venue, or that the claim is time‑barred. When deciding the motion the court generally accepts the complaint’s factual allegations as true and reviews only whether those facts and the law can support the requested relief; the court may dismiss specific claims or the whole case, and it can dismiss with prejudice (final) or without prejudice (allowing amendment).

preliminary injunction regulatory

"by seeking a preliminary injunction during early-2025"

A preliminary injunction is a court order that temporarily stops a party from taking certain actions while a legal case is ongoing. It’s like a warning sign that prevents someone from moving forward with plans that could cause harm or unfair advantage until the court makes a final decision. For investors, it signals that there may be unresolved legal issues affecting the parties involved, which can impact a company's operations or value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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U.S. District Court for the Southern District of Florida denies motions to dismiss filed by all defendants, permitting Genius Group's Racketeer Influenced and Corrupt Organizations Act (“RICO”) claims to proceed.

The Company's lawsuit seeking treble damages of over $750 million against Michael Moe, Peter Ritz, John Clayton, and Michael Carter.

SINGAPORE, Sept. 30, 2026 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) ("Genius Group", "GNS" or the "Company"), a leading AI-powered education group, is announcing today that on September 27, 2026, the United States District Court for the Southern District of Florida denied the motions to dismiss filed in the Company's lawsuit against defendants Michael Moe, Peter Ritz, John Clayton, and Michael Carter.

The Court's denial of the defendants’ motions confirms that the Company has sufficiently alleged claims under the Federal and Florida State iterations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, pursuant to which the Company seeks nearly $1 billion in damages.

The Company’s complaint alleges that the defendants used LZG International, Inc. (“LZGI”) to perpetrate an unlawful scheme through interstate fraudulent wire and mail transactions and to the detriment of the Company (as well as other issuers). Among other things, the Company’s complaint alleges that the defendants made false representations to deceive the Company into entering the asset purchase agreement with LZGI, which enabled the defendants to extort millions of dollars in cash and stock from the Company, and—after the Company evicted Peter Ritz and Michael Moe from their positions within Genius Group—defendants used LZGI to retaliate against the Company by seeking a preliminary injunction during early-2025.

The favorable ruling is the Company’s latest victory in the protracted battle relating to LZGI and joins, most notably, the Company prevailing in the ICC Arbitration against LZGI, pursuant to which Genius was awarded the return of the 7.4 million shares of its common stock and approximately $8 million in monetary relief.

Roger James Hamilton, CEO of Genius Group, said “This is a very positive ruling in favor of the Company. I’d like to acknowledge Mark R. Basile, Esq. and his team at The Basile Law Firm P.C., whose expertise in RICO litigation and securities violations has been instrumental in protecting Genius Group and its shareholders. From winning the ICC arbitration, to vacating the injunction at the Second Circuit, to defeating all motions to dismiss, Mark and his team have delivered results that speak for themselves. We look forward to discovery and to holding the defendants fully accountable.”

The Company remains committed to vigorously litigating its legal interests in the Southern District of Florida against the defendants with a view towards rectifying all the harm the Company has suffered at their hands.

About Genius Group

Genius Group (NYSE: GNS) is a global education group delivering AI powered, education and acceleration solutions for the future of work. Genius Group serves 6 million users in over 100 countries through its Genius City model and online digital marketplace of AI training, AI tools and AI talent. It provides personalized, entrepreneurial AI pathways combining human talent with AI skills and AI solutions at the individual, enterprise and government level. To learn more, please visit geniusgroup.ai

Forward-Looking Statements

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will”, “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 20-F, as may be supplemented or amended by the Company's Reports of a Foreign Private Issuer on Form 6-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise. No information in this press release should be construed as any indication whatsoever of the Company’s future revenues, results of operations, or stock price.

Contacts
For enquiries, contact investor@geniusgroup.ai