A California federal court has granted preliminary approval to fintech company Ryvyl Inc.‘s $1 million cash and stock class action settlement with investors who alleged the company concealed accounting issues.
U.S. District Judge Gonzalo P. Curiel stated that the settlement appears “fair, reasonable and adequate” following the preliminary review. A final approval hearing is scheduled for December 19, 2025.
Under the proposed agreement, Ryvyl will pay $300,000 in cash and issue 700,000 shares of freely tradable common stock, valuing the overall settlement at $1 million. Class counsel intends to request up to a third of the settlement fund, approximately $333,000, in fees. Judge Curiel noted that this figure is “on the upper end of what courts consider typical” and will assess the request further upon submission.
Lead counsel estimates that classwide damages could total up to $1.7 million, with each claimant receiving 4 cents per eligible share.
The lawsuit, which was most recently amended in November 2024, follows a drop in Ryvyl’s stock price in January 2023 after the company disclosed that its financial statements for 2021 and 2022 could no longer be relied upon. Previously known as Greenbox POS, Ryvyl faced claims related to misstatements in its interim reports and Sarbanes-Oxley certifications.
Over the course of the case, Judge Curiel dismissed claims against certain officers and underwriter defendants, including Ryvyl’s former CFO and EF Hutton LLC, citing insufficient evidence of wrongdoing.
The investors are represented by Robert V. Prongay, Ex Kano S. Sams II, Charles Linehan, and Pavithra Rajesh of Glancy Prongay & Murray LLP. The defendants are represented by Sean T. Prosser and Cesar M. Dulanto of Mintz Levin Ferris Glovsky and Popeo PC.
