Coinbase Faces Class Action Lawsuit Following Stock Price Drop, Accused of 'Failure to Disclose Information'

Blockbeats
05-26

BlockBeats News, May 26th, according to The Block report, cryptocurrency exchange Coinbase is facing a shareholder class-action lawsuit due to a recent stock price drop. The lawsuit alleges that the exchange failed to timely disclose a user data leak incident earlier this month and its violation of an agreement with a UK regulatory agency.

Last Thursday, investor Brady Nessler filed a class-action lawsuit in the Eastern District of Pennsylvania federal court, stating that Coinbase's shareholders "suffered significant losses and damages."

The complaint lists a long string of so-called "failure to disclose" incidents by the company in recent years. For example, the lawsuit alleges that Coinbase failed to accurately disclose that its UK subsidiary CB Payments had violated an agreement with the UK Financial Conduct Authority (FCA) in 2020.

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