Genius Group Limited v. LZG International, Inc.
- Vyskocil
- 1:24-cv-08464
- U.S. District Court · Southern District of New York
- 3
In Genius Group Limited v. LZG International, Judge Vyskocil temporarily paused certain stock issuances and Bitcoin purchases pending a hearing.
Genius Group Limited was temporarily required to pause specified stock issuances and Bitcoin purchases. LZG International, Inc., Michael Thomas Moe, and Peter Ritz had service and filing obligations and a scheduled hearing.
What happened
Genius Group Limited v. LZG International, Inc. concerns Respondents’ request to stop Genius Group Limited from issuing more shares, buying Bitcoin with specified funds, and manipulating shares. Respondents said the share issuance could dilute LZG International, Inc.’s rights and affect its ability to inspect corporate records and participate in company management.
The court temporarily required Genius Group Limited to pause issuing additional shares and purchasing Bitcoin with the specified funds. The order did not include a temporary stay against the requested “further manipulation of shares.”
Judge Mary Kay Vyskocil also required Respondents to serve their motion, supporting materials, and the order on Genius Group Limited by February 18, 2025, or the court would vacate the order. The court set a hearing for February 28, 2025, and deadlines for Genius Group Limited’s opposition and Respondents’ reply.
The detailed version
- Genius Group Limited v. LZG International, Inc. · No. 1:24-cv-08464
- Vyskocil
- Feb. 14, 2025
Background
Respondents LZG International, Inc., Michael Thomas Moe, and Peter Ritz sought a temporary restraining order and a preliminary injunction in aid of arbitration. They asked the court to stop Genius Group Limited from:
- Issuing additional shares of its stock, identified in the order as NYSE: GNS;
- Purchasing Bitcoin with funds from investors, rights offerings, and purchases of additional shares; and
- Further manipulating shares.
Respondents argued that issuing more shares could dilute LZG International, Inc.’s rights in Genius and affect its ability to inspect Genius’s corporate books. They also argued that the issuance could permanently change LZG International, Inc.’s right to participate in company management.
Court’s Action
The court explained that a temporary restraining order is intended to preserve the existing situation until the court can consider a request for a preliminary injunction. To preserve that situation, the court ordered Genius Group Limited to temporarily stay:
- Issuing additional shares of its stock; and - Purchasing Bitcoin with funds from investors, funds raised from rights offerings, and funds raised from purchasing additional shares.
The order did not state that Genius Group Limited must temporarily stop the separately requested “further manipulation of shares.”
Service, Briefing, and Hearing Requirements
The court ordered Respondents to immediately serve Genius Group Limited with their motion, supporting materials, and the order. Respondents had to file proof of service by 5:30 p.m. on February 18, 2025. The court stated that it would vacate the order if Respondents failed to complete that service.
Genius Group Limited’s opposition, including evidence for the hearing, was due by 5:30 p.m. on February 21, 2025. Respondents’ reply was due by 5:30 p.m. on February 24, 2025. The court scheduled a hearing on Respondents’ motion for February 28, 2025, at noon in Courtroom 18C of the Daniel Patrick Moynihan Courthouse.
Disposition
This was a temporary procedural order preserving the status quo before the scheduled hearing. The opinion text does not expressly say that Respondents’ motion was granted or denied; it orders the temporary stays and sets conditions and deadlines for further proceedings.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.