Shareholder Attorneys to Receive Cash and Shares
Under the agreement, counsel for the shareholders will collect $200,000 in fees and expenses, split into $25,000 in cash and $175,000 in settlement shares.
Stock Price Plunged After Disclosure of Faulty Statements
The lawsuit stems from investors’ claims that Ryvyl — formerly operating as Greenbox POS — failed to disclose serious accounting issues affecting its financial statements for 2021 and 2022. When the company announced in January 2023 that those statements “can no longer be relied upon,” its stock price dropped nearly 15%, closing at 70 cents per share.
Ryvyl later acknowledged that revised financials would likely show lower total revenue, larger net losses, reduced assets, and diminished stockholders’ equity.
Executives Also Accused of Inflating Repurchase Costs
Individual defendants include co-founders Ben Errez and Fredi Nisan, along with several current and former officers and directors. The suit alleges they oversaw stock repurchases that were overpriced by $12 million because the company’s valuations were artificially inflated.
