Genius Group Secures Court Of Appeals Ruling Granting Partial Stay Of Preliminary Injunction, Allowing Immediate Resumption Of Fundraising, Share Issuance, And Bitcoin Treasury Strategy Pending Appeal, While Advancing $750M RICO Lawsuit Over Alleged Fraud And Extortion That Caused $250M In Damages

requesting a partial stay pending appeal and partial vacatur of the Preliminary Injunction (PI) dated March 13, 2025 granted by the New York Southern District Court (SDNY) in the Company's case vs LZGI (Case No 1:24-cv-08464).

 

The PI that the Company has been seeking to stay enjoins Genius Group from "issuing additional shares of its stock and from any manipulation of its shares, and from purchasing Bitcoin with funds from investors, funds raised from rights offerings, and funds raised from the purchase of additional shares, pending the hearing and determination of the arbitration".

 

Further to this hearing, on May 7, 2025, the Court of Appeals ruled in the Company's favor, with the following ruling:

 

"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. See Uniformed Fire Officers Ass'n v. de Blasio, 973 F.3d 41, 48 (2d Cir. 2020) (setting forth stay factors). Accordingly, upon due consideration, it is hereby ORDERED that the motion for a partial stay pending appeal is GRANTED and the district court's March 13 injunction against Appellant is STAYED pending the resolution of this appeal. The preliminary injunction remains in effect as to Appellees."

 

"It is further ORDERED that the Appellant's motion for partial vacatur of the preliminary injunction, which is construed as seeking summary reversal, is DENIED. The Clerk's Office is directed to consult with the parties to set an expedited schedule for briefing and argument to be held as soon as practicable."

 

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 Temporary Restraining Order (TRO) and PI over the last three months. It is also committed to recovering the damages incurred, which has increased to $250 million.

 

As detailed in previous filings and the Company's most recent investor call, since February 14, 2025, the Company filed multiple letters and motions to the court explaining that the TRO and PI did not maintain the status quo pending arbitration, that they were based on false statements designed to defraud the court, and the intent of the filing of the TRO and PI was to extort further money from Genius. In relation to the Company's allegations of fraud and extortion, on March 31, 2024, the Company filed a lawsuit 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 over $450 million in damages caused by the defendants to Genius Group.

 

Further to this ruling, the Company has instructed its lawyers to submit an updated claim in the RICO lawsuit seeking treble damages and updating the damages the Company seeks in the RICO lawsuit to $750 million.

 

The Company remains committed to protecting itself and its shareholders through legal actions, is committed to rebuilding its education business and operations impacted by these third party actions, and rebuilding its Bitcoin Treasury.