Genius Group provides update to RICO lawsuit
Genius Group (NYSE: GNS) has filed an amended RICO lawsuit against Peter Ritz and Michael Moe of LZGI International, expanding the case to include two additional defendants, Michael Carter and John Clayton. The company is seeking $750 million in treble damages, up from their initial claim of $250 million in actual damages.
The lawsuit stems from alleged fraudulent activities that led to a Temporary Restraining Order and Preliminary Injunction against GNS, preventing the company from raising funds and buying Bitcoin. On May 6, 2025, the United States Court of Appeals granted a stay on the injunction, allowing GNS to resume normal operations. The company is now cooperating with LZGI shareholders in their separate class action and derivative lawsuits against LZGI, Ritz, and Moe.
Genius Group (NYSE: GNS) ha presentato una causa RICO modificata contro Peter Ritz e Michael Moe di LZGI International, ampliando il caso per includere due imputati aggiuntivi, Michael Carter e John Clayton. La società chiede 750 milioni di dollari in danni triplicati, rispetto alla richiesta iniziale di 250 milioni di dollari di danni effettivi.
La causa deriva da presunte attività fraudolente che hanno portato a un Ordine di Restringimento Temporaneo e a un'Ingiunzione Preliminare contro GNS, impedendo alla società di raccogliere fondi e acquistare Bitcoin. Il 6 maggio 2025, la Corte d'Appello degli Stati Uniti ha concesso una sospensione dell'ingiunzione, permettendo a GNS di riprendere le normali operazioni. Ora la società collabora con gli azionisti di LZGI nelle loro azioni collettive e derivanti separate contro LZGI, Ritz e Moe.
Genius Group (NYSE: GNS) ha presentado una demanda RICO enmendada contra Peter Ritz y Michael Moe de LZGI International, ampliando el caso para incluir a dos acusados adicionales, Michael Carter y John Clayton. La empresa busca 750 millones de dólares en daños triples, aumentando su reclamo inicial de 250 millones de dólares en daños reales.
La demanda surge de presuntas actividades fraudulentas que llevaron a una Orden de Restricción Temporal y una Inhibición Preliminar contra GNS, impidiendo que la empresa recaudara fondos y comprara Bitcoin. El 6 de mayo de 2025, el Tribunal de Apelaciones de los Estados Unidos concedió una suspensión de la inhibición, permitiendo que GNS reanudara sus operaciones normales. La empresa ahora coopera con los accionistas de LZGI en sus demandas colectivas y derivadas separadas contra LZGI, Ritz y Moe.
Genius Group (NYSE: GNS)는 LZGI International의 Peter Ritz와 Michael Moe를 상대로 수정된 RICO 소송을 제기했으며, 사건에 두 명의 추가 피고인 Michael Carter와 John Clayton을 포함시켰습니다. 회사는 초기 2억 5천만 달러의 실제 손해배상 청구에서 7억 5천만 달러의 삼배 손해배상을 요구하고 있습니다.
이 소송은 GNS가 자금 조달 및 비트코인 구매를 하지 못하도록 하는 임시 금지 명령 및 예비 금지 명령을 초래한 사기 혐의에서 비롯되었습니다. 2025년 5월 6일, 미국 항소법원은 금지 명령에 대한 집행정지를 승인하여 GNS가 정상적인 운영을 재개할 수 있도록 허용했습니다. 회사는 현재 LZGI 주주들과 협력하여 LZGI, Ritz, Moe를 상대로 한 별도의 집단 소송 및 파생 소송에 참여하고 있습니다.
Genius Group (NYSE : GNS) a déposé une plainte RICO modifiée contre Peter Ritz et Michael Moe de LZGI International, étendant l’affaire pour inclure deux défendeurs supplémentaires, Michael Carter et John Clayton. L’entreprise réclame 750 millions de dollars de dommages-intérêts triples, contre une demande initiale de 250 millions de dollars de dommages réels.
Le procès découle d’activités frauduleuses présumées ayant conduit à une ordonnance restrictive temporaire et une injonction préliminaire contre GNS, empêchant la société de lever des fonds et d’acheter des bitcoins. Le 6 mai 2025, la Cour d’appel des États-Unis a accordé une suspension de l’injonction, permettant à GNS de reprendre ses activités normales. La société coopère désormais avec les actionnaires de LZGI dans leurs actions collectives et dérivées distinctes contre LZGI, Ritz et Moe.
Genius Group (NYSE: GNS) hat eine geänderte RICO-Klage gegen Peter Ritz und Michael Moe von LZGI International eingereicht und den Fall um zwei weitere Beklagte, Michael Carter und John Clayton, erweitert. Das Unternehmen fordert 750 Millionen US-Dollar an dreifachen Schadensersatz, anstelle der ursprünglichen Forderung von 250 Millionen US-Dollar an tatsächlichen Schäden.
Die Klage resultiert aus angeblichen betrügerischen Aktivitäten, die zu einer einstweiligen Verfügung und einer vorläufigen Unterlassungsverfügung gegen GNS führten, die dem Unternehmen das Sammeln von Geldern und den Kauf von Bitcoin untersagten. Am 6. Mai 2025 gewährte das US-Berufungsgericht eine Aussetzung der Verfügung, die es GNS ermöglichte, den normalen Betrieb wieder aufzunehmen. Das Unternehmen arbeitet nun mit den Aktionären von LZGI bei deren gesonderten Sammel- und Derivatsklagen gegen LZGI, Ritz und Moe zusammen.
- Court of Appeals ruled in company's favor, allowing resumption of normal operations including fundraising and Bitcoin purchases
- Increased damage claim to $750 million (treble damages) from $250 million
- Successfully recovered and secured CEO's hacked X account
- Gaining support through cooperation with LZGI shareholders in their separate lawsuits
- Company suffered considerable damages during the 3-month TRO and PI period
- Legal proceedings indicate potential ongoing business disruptions
- Recent criminal activity targeting CEO's social media account suggests security vulnerabilities
- Complex multi-party litigation could result in extended legal proceedings and costs
Insights
Court ruling allows Genius Group to resume operations while pursuing massive $750M RICO lawsuit against alleged fraudsters who previously restricted the company's activities.
Genius Group's amended RICO lawsuit represents a significant legal development with substantial financial implications. The company has expanded its complaint against Peter Ritz and Michael Moe (controlling officers of LZGI) to include two additional defendants, while increasing damage claims to $750 million (which includes treble damages under federal statute).
The most critical update is the May 6th ruling by the U.S. Court of Appeals that granted a stay on the previously imposed Preliminary Injunction. This legal victory is particularly consequential as it enables Genius Group to resume normal business operations including fundraising, share issuance, Bitcoin purchases, and executing growth plans—activities that had been restricted for approximately three months.
The court's statement that Genius Group "has made a strong showing that it is likely to succeed on the merits" suggests favorable judicial perception of their case. This dramatically improves the company's operational freedom while the appeal proceeds.
Genius Group's multi-front legal strategy now includes cooperation with LZGI shareholders in their separate class action and derivative lawsuits against the same defendants. The engagement of specialized RICO litigation counsel indicates a sophisticated approach to pursuing the complex racketeering claims.
The reported
SINGAPORE, May 21, 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 lawyers have filed an amended complaint against Peter Ritz and Michael Moe as the controlling officers and directors of LZGI International, Inc (“LZG”) under the Racketeer Influenced and Corrupt Organizations Act (RICO), in the United States District Court, Southern District of Florida, seeking updated damages of over
The amended complaint also includes two additional defendants, Michael Carter and John Clayton, who is also a defendant in the case filed by the United States and Exchange Commission (“SEC”), alleging Securities Fraud in the United States District Court District of Utah, Central Division (Case No: 2:24-cv-918). The SEC case against Clayton alleges he and other parties engaged in a securities fraud scheme to secretly amass and then illegally sell stock of small, publicly traded companies including LZGI. Genius Group alleges in its amended filing that both individuals are a part of the RICO enterprise related to the LZGI transaction with the Company.
The RICO case relates to the Company’s allegations of Ritz and Moe’s attempt to defraud the Company and filing false statements designed to defraud the court, causing a Temporary Restraining Order (“TRO”) and Preliminary Injunction (“PI”) to be issued against the Company preventing it from raising funds and buying Bitcoin, as a way to cause damage and extort further money from Genius.
On May 6, 2025, the United States Court of Appeals for the Second Circuit ruled in the Company’s favor, granting a stay on the PI, stating ““Appellant has made a strong showing that it is likely to succeed on the merits and suffers clear irreparable injury absent a stay, warranting a stay pending appeal.”
In summary, the Court of Appeals ruling enables the Company to resume its normal operations with immediate effect, including raising funds, selling shares, buying Bitcoin and funding its operations and growth plans, pending the resolution of the appeal.
Following this positive development, the Company is now focused at restructuring and rebuilding based on the considerable damages incurred by the TRO and PI over the last three months. It is also committed to recovering the damages incurred, which has increased to
The Company’s legal case against Ritz and Moe is led by the Company’s attorneys Mark R. Basile, Esq. and Alyssa Feldman, Esq. of the Basile Law Firm P.C., a leading RICO litigation firm.
In other cases related to LZGI, Ritz and Moe, the Company is now cooperating with the LZGI Shareholders who have brought a Class Action lawsuit against LZGI, Ritz and Moe for violation of federal securities laws, filed in United States District Court Southern District of New York (Case No: 1:24-cv-07551) and a shareholders’ derivative lawsuit in the Circuit Court of the Eleventh Judicial Circuit In and For Miami-Dade County, Florida (Case No: 2024-019773-CA-01), with the Company’s CEO, Roger Hamilton providing an affidavit including testimony against Ritz and Moe in aid of the LZGI Shareholders’ case.
With relation to the recently announced hacking of Mr. Hamilton’s X account, the Company worked directly with X to successfully recover and secure the account on May 20, 2025. The Company continues to investigate any potential relationships between this criminal activity and the Company’s progress in its various legal actions.
For further details on the Company’s RICO complaint (Case No: 1:25-cv-21496), please refer to the Company’s press release of April 4, 2025 available here.
About Genius Group
Genius Group (NYSE: GNS) is a Bitcoin-first business delivering AI powered, 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.
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FAQ
What is the current status of Genius Group's (GNS) RICO lawsuit?
Why did Genius Group (GNS) increase its damage claim to $750 million?
What was the outcome of the Court of Appeals ruling for Genius Group (GNS) on May 6, 2025?
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What legal actions are being taken against LZGI and its officers?
