McGreevy, et al., v. Digital Currency Group, Inc., et al. United States District Court – District of Connecticut Class Period: February 2, 2021 – november 16, 2022 Attorneys: Donald R. HallDHall@kaplanfox.comJeffrey P. Campisi JCampisi@kaplanfox.comJason A. Uris JUris@kaplanfox.com Documents: Third Amended Complaint Opposition to Motion to Dismiss Ruling and Order on Motion to Dismiss Federal Judge Allows Core Securities Claims in McGreevy, et al., v. Digital Currency Group, Inc., et al. to Proceed A Connecticut federal judge has allowed key federal securities claims to move forward in in McGreevy, et al., v. Digital Currency Group, Inc., et al. pending in the United States District Court for the District of Connecticut (Case No. 3:23-cv-00082) (SRU). In a 50‑page ruling issued February 24, 2026, U.S. District Judge Stefan R. Underhill granted in part and denied in part the defendants’ motions to dismiss.The court concluded that investors plausibly alleged that the Genesis Yield program was a security—either as an investment contract under Howey or a note under Reves.The court found that the Third Amended Complaint adequately alleged that, following the collapse of Three Arrows Capital, Genesis became insolvent and DCG and its executives engaged in a scheme to conceal that insolvency, including by exchanging the uncollectable $1.1 billion 3AC debt for a 10‑year DCG promissory note that was allegedly misrepresented as a current, high‑value asset.The court held that the plaintiffs sufficiently pled claims under Sections 5, 12(a)(1), and 15 of the Securities Act of 1933, and adequately alleged material misstatements, scienter, reliance, and loss causation, allowing their claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 to proceed. However, the court declined to exercise supplemental jurisdiction over the plaintiffs’ state consumer protection and common‑law fraud claims, dismissing those counts without prejudice. WHY CONTACT KAPLAN FOX Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. Connect with Kaplan Fox. Receive a complimentary case review now. Contact Us Snowflake Inc. Class Action Filed: Click Here For More Information See the Case Kaplan Fox Files Class Action to Recover Losses for Investors in the Easterly ROCMuni High Income Municipal Bond Fund See the Case Charles River Laboratories International, Inc. See the Case Digital Currency Group, Inc. See the Case Spectrum Pharmaceuticals, Inc. See the Case Co-Diagnostics, Inc. See the Case Vale S.A. Securities Fraud Lawsuit See the Case Geron Corporation See the Case Ambac Financial Group Securities Litigation See the Case Citigroup CSO Hedge Fund Class Action See the Case Eletrobras Securities Litigation See the Case Envision Healthcare Class Action See the Case
