The lawsuit alleges that both Citadel and Virtu engaged in a pattern of submitting and subsequently canceling buy or sell orders without the intent to execute them. By creating these baiting orders, the firms reportedly misled other market participants regarding true supply and demand dynamics. This practice allegedly inflated bid-ask spreads and allowed the defendants to profit by capturing customer order flow at favorable prices.

Evidence cited in the complaint points to the week of February 10, 2025, when Genius stock dropped 22% in the absence of company-specific news. During that period, Citadel and Virtu accounted for nearly 70% of all off-exchange trading in Genius securities. Short volume surged to over 61% as the firms built significant positions, according to the filing. Investors who acquired securities during the class period must petition the court by August 28, 2026, if they wish to serve as Lead Plaintiff.