* Shareholders allege misleading statements in IPO

documents

* Gemini shares have fallen since September IPO

* Gemini not available for comment

By Jonathan Stempel

NEW YORK, March 19 (Reuters) - Gemini Space Station ( GEMI )

and its billionaire founders Cameron and Tyler

Winklevoss were sued by shareholders who said they were

defrauded about the cryptocurrency exchange's business

prospects, and suffered losses as a strategy shift, mounting

losses, job cuts and executive departures caused the stock price

to fall.

In a proposed class action complaint filed on Wednesday night in

Manhattan federal court, shareholders said Gemini made false and

misleading statements in marketing documents for its September

11, 2025 initial public offering by overstating the viability of

its crypto platform and its ability to grow internationally.

They also said the New York-based company didn't disclose it

was poised for an "abrupt corporate pivot" to focus on

prediction markets, where users wager on the likelihood of

future events.

Shareholders said Gemini's problems surfaced in February when

the company said it would cut about 25% of its workforce and

wind down European Union, U.K. and Australian operations;

announced it was "parting ways" with its chief operating

officer, chief financial officer and chief legal officer; and

projected a 2025 net loss of as much as $602 million, or $267

million before interest, taxes, depreciation, amortization and

other adjustments.

The share price fell after those announcements to below $7,

more than 75% below the $28 IPO price.

Gemini did not immediately respond on Thursday to requests

for comment.

The lawsuit seeks unspecified damages for shareholders

between September 12, 2025 and February 17, 2026.

Tyler Winklevoss is Gemini's chief executive, and Cameron

Winklevoss is its president. The identical twins were each worth

$2.7 billion as of Wednesday, Forbes magazine said.