Genius Group Board approves shareholder dividend, Bitcoin purchase from proceeds of future legal wins.

Rhea-AI Summary

Genius Group (NYSE American: GNS), an AI-powered education company, has announced its Board's approval of a distribution plan for future legal settlement proceeds. The company is pursuing two major legal cases with combined damages exceeding $1 billion.

The first case is a RICO complaint seeking $750 million in damages against LZGI International officers. The second is an upcoming lawsuit alleging naked short selling with damages initially calculated at $251.3-262.7 million for 2023, with potentially higher amounts for 2024-2025.

The Board has approved a 50/50 distribution plan for net proceeds: half will be distributed to shareholders as special dividends, and half will be used to purchase Bitcoin for the company's Treasury.

Positive

• None.

Negative

• No guarantee on the final outcome of either legal case
• Uncertain timeframes for legal proceedings and potential recovery
• Legal fees, recovery fees, and taxes will reduce the net proceeds available for distribution
• Distribution plan subject to regulatory approval from SEC, NYSE, and Singapore law

News Market Reaction

+55.41%

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+55.41% News Effect

On the day this news was published, GNS gained 55.41%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SINGAPORE, June 26, 2025 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading AI-powered, Bitcoin-first education group, today announced that its Board of Directors have approved a distribution plan from the proceeds of any and all future legal wins, with net proceeds divided equally for distribution to shareholders and purchase of Bitcoin for its Bitcoin Treasury.

Genius Group’s CEO, Roger Hamilton said “The Company has two legal cases, one filed and one pending, in which we are seeking combined damages of over $1 billion. As both lawsuits are being pursued by the Company to recover damages caused by third parties directly to our shareholders, the Board believes that 100% of any proceeds from the successful outcome of these cases should be directly distributed or reinvested for the benefit of shareholders.”

The Company currently has filed a complaint under the Racketeer Influenced and Corrupt Organizations Act (RICO), in the United States District Court, Southern District of Florida against Peter Ritz and Michael Moe as the controlling officers and directors of LZGI International, Inc (“LZG”) and against Michael Carter and John Clayton, seeking damages of over $750 million (which includes treble damages potentially recoverable under federal statute) caused by the defendants to Genius Group. (Case No: 1:25-cv-21496)

The Company also has an upcoming lawsuit alleging naked short selling and evidence of spoofing against certain parties, led by Wes Christian of Christian Attar, with alleged damages calculated at between $251.3 million and $262.7 million following the initial analysis of the Company’s share trading data in 2023. The Company’s legal team has continued detailed tracking of all trades in the Company for 2024 and 2025, and the filing, which is currently in final review pending filing, will include an updated damages amount which the Company anticipates to be significantly higher than the 2023 calculation based on the information provided.

Whilst there is no guarantee on the final outcome of either case, the time frames of the cases or on the amount of damages that the Company may win or recover, in the event that the Company is successful in recovering any damages, the Board has agreed to the following distribution:

• Distribution of 50% of any net damages recovered by way of special dividend to shareholders, to be issued once any net damages have been recovered.
  
  
• Investment of 50% of any net damages recovered in purchasing Bitcoin for the Company’s Bitcoin Treasury, to be purchased once any net damages have been recovered.
  

In the event there are multiple instances of damage recovery, the distribution will apply to each instance. Net damages will be damages received by the Company net of legal fees, recovery fees and tax. Any and all distributions will be subject to applicable rules by the relevant regulatory bodies including the SEC, NYSE and Singapore law.

About Genius Group

Genius Group (NYSE: GNS) is an AI powered education group with a Bitcoin-first treasury, delivering education and acceleration solutions for the future of work. Genius Group serves 5.8 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 https://www.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 Genius Group: investor@geniusgroup.ai

FAQ

What is Genius Group's (GNS) plan for distributing potential legal settlement proceeds?

Genius Group plans to distribute 50% of net legal proceeds as special dividends to shareholders and invest the remaining 50% in Bitcoin for its Treasury.

How much is Genius Group (GNS) seeking in damages from its legal cases?

GNS is seeking over $1 billion in total damages: $750 million from a RICO complaint and $251.3-262.7 million from a naked short selling case, with potential for higher amounts.

What are the two lawsuits Genius Group (GNS) is pursuing?

GNS has filed a RICO complaint against LZGI International officers and is preparing a lawsuit alleging naked short selling and spoofing led by attorney Wes Christian.

When will Genius Group (GNS) shareholders receive the special dividend from legal proceeds?

The special dividend will be distributed only after any net damages have been recovered, with no guaranteed timeline for recovery.

What factors could reduce the final payout to GNS shareholders from legal settlements?

The net proceeds will be reduced by legal fees, recovery fees, and taxes, and all distributions must comply with SEC, NYSE, and Singapore regulatory requirements.