DeFi Technologies Faces Consolidated Investor Lawsuits Following Sharp Forecast Revision

DeFi Technologies CA24464X1069

Multiple U.S. law firms have initiated a wave of consolidated class action lawsuits against DeFi Technologies, alleging the company made materially false and misleading statements. The legal actions, filed in the United States District Court for the Eastern District of New York (Case No. 25-cv-06637), focus on representations made between May 12, 2025, and November 14, 2025, concerning its business model, financial projections, and its "DeFiAlpha" arbitrage strategy.

The core allegation claims that during the class period, DeFi Technologies and certain of its executives issued overly optimistic statements that lacked a reasonable basis. The lawsuit specifically contends the company:
* Overstated the efficacy and scalability of its proprietary DeFiAlpha trading strategy.
* Failed to disclose significant implementation delays associated with this core initiative.
* Underestimated competitive pressures from other Digital Asset Treasury (DAT) providers, subsequently issuing unrealistic financial forecasts based on this flawed assessment.

Investors argue that the positive business outlook maintained from May through November 2025 was not grounded in fact, leading to significant losses when the company later revised its position.

A Rapid Shift from Optimism to Downgrade

The timeline of events in 2025 underscores the dramatic shift in narrative. On August 14, 2025, management expressed strong optimism, raising its full-year revenue guidance to $218.6 million and citing robust business performance. Capitalizing on this sentiment, the company successfully completed an oversubscribed direct placement of $100 million in late September.

This confident stance reversed abruptly weeks later. On November 14, 2025, DeFi Technologies slashed its 2025 revenue forecast by nearly half, reducing it from $218.6 million to approximately $116.6 million. The company cited implementation delays with the DeFiAlpha strategy as the primary reason. Concurrently, it reported a nearly 20% quarterly revenue decline for Q3 and announced the resignation of its CEO, Newton.

The market reaction was severe:
* The stock price had already fallen 7.43% to $1.62 on November 6, 2025.
* Following the November 14 announcements, shares plummeted an additional $0.40, or 27.59%, closing at $1.05 on November 17, 2025.

The legal complaint hinges on the discrepancy between the earlier optimistic statements and capital raise, and the subsequent drastic forecast reduction and executive departure.

Next Steps for Investors and the Company

The court has set a deadline of January 30, 2026, for investors seeking to be appointed as the Lead Plaintiff for the class. Notices from firms including Faruqi & Faruqi, LLP and ClaimsFiler are directly related to this procedural timeline.

For DeFi Technologies, the immediate challenges are twofold: defending against the allegations in court while stabilizing operations following the CEO's exit. Upcoming financial reports will be scrutinized for evidence that the DeFiAlpha delays are being resolved and whether the revised, lower revenue target of ~$116.6 million is attainable in the current competitive landscape. Until these uncertainties are resolved and the litigation is pending, the company's shares are expected to remain under pressure.