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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.