Legal Challenges Weigh on DeFi Technologies as Shareholder Deadline Looms

DeFi Technologies CA24464X1069

Shares of DeFi Technologies Inc. (DEFT) are under scrutiny following renewed attention on an ongoing class action lawsuit. While the stock showed modest pre-market gains, the company continues to navigate a landscape defined by a significant revenue forecast reduction and mounting legal pressure.

The core of the shareholder litigation stems from financial disclosures made in late 2025. Market sentiment turned sharply negative after DeFi Technologies reported third-quarter results that missed revenue expectations by nearly 20%.

A more substantial revision came with the company's updated full-year 2025 guidance:
- Previous revenue forecast: approximately $218.6 million
- Revised revenue forecast: approximately $116.6 million

This drastic cut of over $100 million significantly heightened investor uncertainty and triggered increased stock volatility. Plaintiffs in the class action allege that the risks leading to this shortfall were not properly communicated to the market in advance.

Lawsuit Details and Key Allegations

Several law firms specializing in securities litigation, including Bernstein Liebhard LLP, The Gross Law Firm, and Levi & Korsinsky LLP, have issued reminders about a crucial deadline in the case. Investors have until January 30, 2026, to petition the court for lead plaintiff status.

The lawsuits target statements made by the company between May 12, 2025, and November 14, 2025. The central allegations claim DeFi Technologies failed to disclose material problems and downplayed operational risks. Specific accusations include:
- A lack of transparent communication regarding delays in the "DeFi Alpha" arbitrage strategy, a key revenue driver.
- The minimization of growing competitive pressures within the digital asset treasury solutions sector.

Stock Performance and Market Reaction

Following a period of pronounced weakness that saw the equity price fall to $0.73, the shares have recently exhibited some stabilization.
- Closing price (January 2, 2026): $0.884 on Nasdaq
- Pre-market trading (current): Activity in a range of $0.93 to $0.95, representing an increase of roughly 5% to 7% above the last closing price.

This recent uptick suggests some market participants view the prior lows as a potential entry point, despite the persistent overhang from the legal proceedings.

Critical Distinction: DEFT vs. DFDV

Investors are advised to carefully differentiate between two similarly named entities:
- DeFi Technologies Inc., trading under the ticker DEFT (Nasdaq / CBOE CA)
- DeFi Development Corp, trading under the ticker DFDV

DeFi Development Corp (DFDV) recently issued its own news regarding a preliminary Q4 update and a partnership with Hylo, which positively influenced its share price. These developments are entirely separate from the class action lawsuits and guidance reduction, which pertain solely to DeFi Technologies Inc. (DEFT).

Summary of Key Facts

• Current Date: January 5, 2026
• Ticker Symbol: DEFT (Nasdaq / CBOE CA)
• Previous Close: $0.884 (January 2, 2026)
• Pre-Market Trend: Gains toward the $0.95 level
• Legal Deadline: January 30, 2026 (for lead plaintiff applications)
• Core Allegation: Failure to disclose delays in the "DeFi Alpha" strategy
• Financial Catalyst: Sharp reduction of 2025 revenue guidance from $218.6M to $116.6M

The coming weeks will be pivotal as the class action consolidates ahead of the January 30 deadline, with potential implications for both the financial standing and reputation of DeFi Technologies.