Legal Challenges Weigh on DeFi Technologies Stock

DeFi Technologies CA24464X1069

While shares of DeFi Technologies have posted significant gains since the start of the year, investor focus has shifted sharply from price performance to mounting legal risks. The catalyst is a series of class-action lawsuits in the United States, with a key deadline for shareholders falling this week.

The current legal pressure is directly tied to corporate events in November 2025. On November 14, DeFi Technologies released its third-quarter results, reporting a revenue decline of nearly 20%. More impactful, however, was a severe downward revision to its full-year guidance.

The company slashed its 2025 revenue forecast from an initial $218.6 million to approximately $116.6 million—a reduction of over $100 million that nearly halved previous expectations. This adjustment, coupled with the resignation of CEO Olivier Roussy Newton, triggered a steep sell-off. By November 17, 2025, the stock price had fallen to $1.05, representing a decline of 27.59% within days.

Mounting Class-Action Litigation

At the heart of the matter are class-action complaints filed by several law firms, including Bernstein Liebhard LLP, Faruqi & Faruqi LLP, and The Portnoy Law Firm. These firms are actively contacting shareholders, noting that motions for the Lead Plaintiff role must be submitted by January 30, 2026.

The lawsuits pertain to the period between May 12, 2025, and November 14, 2025. The plaintiffs allege that during this time, DeFi Technologies made overly positive statements concerning key aspects of its business. The specific accusations include:
* Failing to disclose significant delays in its proprietary DeFi arbitrage strategy
* Underestimating competitive pressures in the digital asset arbitrage sector
* Issuing an unrealistic revenue forecast for the 2025 fiscal year

These allegations form the foundation of the ongoing legal dispute, which is now a primary driver of market sentiment toward the equity.

Current Market Position and Key Data Points

The stock currently trades around the $0.87 mark, below its mid-November 2025 level. Although it maintains a year-to-date gain of roughly 15% based on its December 31, 2025 closing price of $0.755, uncertainty remains elevated.

Essential facts of the current situation:
* Current Trading Level: Approximately $0.87
* Legal Deadline: Lead Plaintiff motions due by January 30, 2026
* Forecast Adjustment: 2025 revenue guidance cut from $218.6M to ~$116.6M
* Management Change: Former CEO Olivier Roussy Newton resigned following the guidance revision

The market is reacting strongly to the company's own assessment that arbitrage opportunities are being partially "absorbed" or delayed by competitors. This acknowledgment has significantly altered the risk perception among investors.

With the approaching deadline in the class-action suits, the situation remains tense. Heightened volatility is expected in the near term, as the combination of legal proceedings and a damaged financial outlook continues to dictate price action.