Artificial intelligence-focused education technology company Genius Group has announced plans to distribute potential proceeds from two multi-billion-dollar lawsuits to shareholders and allocate a portion towards expanding its corporate Bitcoin treasury.
The company’s board of directors, in a statement released Thursday, approved a plan to address any recovery from the lawsuits, which seek combined damages exceeding $1 billion.
Litigation Details
One action has been filed under the RICO (Racketeer Influenced and Corrupt Organizations Act) seeking damages exceeding $750 million against LZGI International. The company’s CEO, Roger Hamilton, stated the second lawsuit is pending filing.
Hamilton estimates the company could recover at least $262 million based on 2023 data, with updated assessments from subsequent years expected to increase the potential payout.
According to Hamilton, the legal actions aim to recoup damages incurred by shareholders due to the alleged actions of the defendants.
Hamilton emphasized: “The Board believes that 100% of any proceeds from the successful outcome of these cases should be directly distributed or reinvested for the benefit of shareholders.”
Winners and Losers Framework
Under the distribution framework proposed by Hamilton, 50% of any recovery will be allocated as a special dividend to shareholders. The remaining proceeds will be directed toward the company’s Bitcoin treasury, adding to the cryptocurrency assets held by the corporation.
In a hypothetical scenario where both suits result in full success, shareholders would receive a $7 per share dividend and the company would acquire 5,000 BTC, adding significantly to its existing treasury holdings at current market rates (~$107,000/BTC).
The company stated its intention to adhere to this distribution strategy for any future court awards from the ongoing cases and potentially additional litigation. However, Genius Group cautioned that “there is no guarantee” of success in either current case.
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Accelerated Bitcoin Accumulation
This lawsuit contingency plan builds upon Genius Group’s existing aggressive strategy for acquiring Bitcoin assets. Recently, on June 17th, the company significantly expanded its Bitcoin treasury, adding more than 50% to its holdings following a series of BTC purchases, demonstrating its commitment to cryptocurrency accumulation.
The company previously sought regulatory relief, applying for a temporary ban to prevent shareholders from selling their investments, raising funds, or directing capital into the company’s Bitcoin purchases. This restriction was subsequently lifted.
Continued diversification into Bitcoin represents a distinct shift for a company primarily focused on AI-driven edtech solutions, highlighting the growing intersection of traditional finance and cryptocurrency assets.
