DeFi Technologies Faces Investor Lawsuit Following Revenue Downgrade and Leadership Change

DeFi Technologies Inc. finds itself navigating a significant crisis, with a newly filed class action lawsuit adding to a series of recent setbacks. The legal challenge alleges the company misled shareholders about its operational health during a period of declining performance.

The company's troubles became public in mid-November with the release of its third-quarter results. Revenue for Q3 fell by 20% year-over-year to $22.5 million. Concurrently, the firm slashed its full-year 2025 revenue forecast by 47%, revising it downward from $218.6 million to $116.6 million.

This substantial guidance cut was swiftly followed by the resignation of Chief Executive Officer Olivier Roussy Newton on November 17. Company co-founder Johan Wattenström assumed the roles of both CEO and Executive Chairman. The stock price reacted negatively, dropping to $1.05 per share.

Core of the Legal Allegations

Law firm Johnson Fistel filed the securities class action on behalf of investors who purchased shares between May 12 and November 14, 2025. The suit centers on claims that DeFi Technologies' management obscured the true state of its business.

Key allegations include:
* Failure to disclose significant delays in implementing its decentralized finance (DeFi) arbitrage strategy.
* Misrepresenting the growing competitive threats from other digital asset treasury management firms.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

According to the filing, these undisclosed issues directly impaired the company's ability to meet its financial objectives. The lawsuit contends that investors were kept in the dark until the disappointing Q3 figures and revised outlook were announced on November 14.

Market and Analyst Reaction

In explaining the drastic forecast reduction, the company cited the "proliferation of digital asset treasury companies" and a price consolidation phase in the broader cryptocurrency market. These factors, it stated, severely limited the arbitrage opportunities that form the core of DeFi Technologies' business model.

Equity researchers moved quickly to adjust their valuations. Benchmark lowered its price target to $3.00, while Northland Capital reduced its target to $2.50, signaling deep concerns over the sustainability of the company's operations under current market conditions.

Path Forward and Legal Deadline

Investors who acquired DeFi Technologies stock during the specified class period have until January 30, 2026, to seek lead plaintiff status in the action. The company's leadership, now under Johan Wattenström, faces the dual challenge of restoring market confidence while steering the firm through the impending legal process. The share price continues to search for a stable footing amid the uncertainty.