Overview

A class action lawsuit has been filed against Genius Group Limited (“GNS” or the “Company”) (NYSE: GNS) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The GNS class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired securities of GNS on the New York Stock Exchange (“NYSE”) or pursuant to other domestic transactions, as a result of the LZGI-GNS Merger, between December 1, 2023, to September 25, 2024 (the “Class Period”).  Investors have until December 3, 2024, to seek appointment as lead plaintiff in the GNS class action lawsuit.

Defendant Peter Ritz co-founded FatBrain LLC (“FatBrain”), aiming to develop artificial intelligence (“AI”) solutions across various sectors like finance, crypto, and education.  Despite bringing in Plaintiff Shawn Carey as Chief Operating Officer and Rajarshi Das (individual) as Chief Scientist, Defendant Ritz maintained full control over FatBrain, shutting them out of decision-making and financial information.  In 2021, Defendant Ritz orchestrated a reverse merger with Defendant LZGI International Inc. (“LZGI”), where he became the largest shareholder and Chief Executive Officer.  However, Defendant LZGI was poorly managed, with no accounting system in place, and Defendant Ritz ensured all funds were controlled by FatBrain’s accounts.

Defendant Ritz and Defendant Michael Moe, another executive, diverted Defendant LZGI’s funds for personal gain, falsely presenting Defendant LZGI as a legitimate company acquiring AI firms.  They failed to invest in these businesses, leading them to collapse while continuing to raise and steal investor funds.  One notable acquisition, Intellagents, was initially profitable, but Defendant Ritz mismanaged the funds, did not pay employees, and eventually let the business fail.

The fraudulent acquisitions continued with SoTech and Predictive Black, where Defendant Ritz and Defendant Moe structured deals to divert funds without fulfilling the obligations of the agreements.  Their mismanagement and theft led to significant losses for Defendant LZGI and its investors.  Despite raising millions under false pretenses, they consistently failed to deliver products or maintain the acquired businesses.

In 2023, Defendants Ritz and Moe attempted to salvage their scheme by merging Defendant LZGI with Defendant GNS, a publicly traded company.  The merger did not benefit Defendant LZGI but allowed Defendant Ritz and Defendant Moe to conceal their fraud, take leadership roles at Defendant GNS, and secure personal financial gains.  They issued millions of unauthorized shares to themselves and close associates, further defrauding investors.  As a result, Defendant LZGI shareholders lost significant value, and the fraud was eventually exposed, leading to legal action and a collapse in stock value.  Defendant Roger Hamilton, involved with GNS, helped facilitate the fraudulent scheme by supporting the merger, which ultimately enriched Ritz and Moe at the expense of investors.

*          *          *

If you purchased or otherwise acquired securities of GNS on the NYSE or pursuant to other domestic transactions, as a result of the LZGI-GNS Merger, between December 1, 2023, to September 25, 2024, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the GNS class action lawsuit is December 3, 2024.