DeFi Technologies (NEOE:DEFI) Is Down 10.4% After Class Action Over Alleged Misleading Guidance

• On January 15, 2026, Pomerantz LLP announced that a class action lawsuit had been filed in the Eastern District of New York against DeFi Technologies Inc. and certain officers, alleging that between May 12, 2025 and November 14, 2025 they made materially false and misleading statements about the company’s business, competition, and revenue outlook.
• The complaint centers on DeFi Technologies’ DeFi arbitrage strategy, claiming investors were misinformed about execution delays and competitive pressures that could affect the company’s ability to meet its 2025 revenue guidance.
• Next, we’ll assess how allegations around delayed execution of DeFi Technologies’ key arbitrage strategy shape the company’s broader investment narrative.

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What Is DeFi Technologies’ Investment Narrative?

To own DeFi Technologies today, you have to believe the company can convert its DeFi arbitrage strategy and stablecoin partnerships into a durable, cash-generative business despite big question marks over execution and governance. Short term, the key catalysts had been progress on DeFi arbitrage deployment and clearer visibility on meeting the sharply reduced 2025 revenue guidance. The new class actions go straight at those points, challenging past disclosures on delays, competition and guidance, and add another layer to existing going concern flags, high valuation multiples and a relatively new management team with rich CEO pay. Whether the lawsuits ultimately prove material will depend on outcomes and any further disclosures, but they already raise the bar for trusting management’s commentary and could limit how quickly sentiment and the share price can recover.

However, the real concern for investors may be what the lawsuits suggest about disclosure and execution risk.

Our expertly prepared valuation report on DeFi Technologies implies its share price may be too high.

Exploring Other Perspectives

Seven Simply Wall St Community fair value estimates for DeFi span roughly US$1.24 to US$6.70 per share, underscoring how differently investors view the story. Set against fresh securities lawsuits targeting its core arbitrage strategy, this wide gap in expectations invites you to compare multiple viewpoints before deciding how the legal and execution risks could influence DeFi Technologies’ future performance.

Explore 7 other fair value estimates on DeFi Technologies – why the stock might be worth just CA$1.24!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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