The AI-driven edtech company Genius Group announced plans to distribute potential earnings from a billion-dollar lawsuit to shareholders, with a portion allocated to expand its Bitcoin (BTC) reserves.
In a press release on Thursday, the Genius Group board approved a plan to redistribute any winnings from two lawsuits, which have a total compensation amount exceeding $1 billion.
One of the lawsuits was filed under the Racketeer Influenced and Corrupt Organizations Act (RICO), seeking over $750 million in damages from LZGI International. The second lawsuit has not yet been filed, according to Genius Group CEO Roger Hamilton.
Hamilton stated that based on 2023 data, the company expects to receive at least $262 million in compensation, with updated figures potentially increasing this amount to cover losses for 2024 and 2025.
Hamilton noted that these lawsuits aim to recover losses incurred by shareholders due to the defendants' actions.
"The board believes that 100% of the proceeds from a successful outcome of these cases should be directly distributed or reinvested for the benefit of shareholders," he said.
According to Hamilton, 50% of the winnings will be distributed to shareholders as a special dividend, while the other half will be added to the company's Bitcoin (BTC) reserves.
If the company wins both legal cases, shareholders will receive a dividend of $7 per share, while Genius Group will purchase and add 5,000 BTC to its reserves at the current market price (approximately $107,000 per Bitcoin).
Future court winnings will also follow this distribution plan. However, the company clarified that there is "no guarantee" of winning or payment in either of these cases.
On June 17, Genius Group expanded its Bitcoin reserves by over 50% through a series of BTC acquisitions. The company's goal is to acquire 1,000 BTC for its reserves.
Genius Group had been temporarily prohibited from selling shares, raising funds, and using investor funds to purchase Bitcoin, a ban that was lifted a month later.
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