Coinbase Class Action Lawsuit is Filed as Price of the Stock Plummets
A Class Action Lawsuit is filed against Coinbase Global Inc. Coinbase is the largest cryptocurrency exchange in the United States. As of the Company’s offering, the Coinbase platform was used by approximately 43 million retail users, 7,00 institutions, and 115,000 ecosystem partners in over 100 countries. On April 14, 2021, Coinbase went public through the Offering, making available 114,850,769 shares of its Class A common stock to the general public. Coinbase shares began trading on the NASDAQ at $381.00 per share. According to the complaint, the registration statement and prospectus used to effectuate the Company’s Offering were false and misleading and omitted to state that, at the time of the Offering: (1) Coinbase required a sizeable cash injection; (2) Coinbase’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base; and (3) as a result of the foregoing, the positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis. As the truth about the Company’s need to raise cash and its platform’s limitations reached the market, the value of Coinbase’s shares declined dramatically. By the commencement of the action, Coinbase’s shares traded as low as $208.00 per share, or over 45% below the April 14, 2021 opening price of $381.00 per share.
The alleged class includes : All persons and entities that purchased or otherwise acquired Coinbase Class A common stock pursuant and/or traceable to the Company’s registration statement and prospectus for the resale of up to 114,850,769 shares of its Class A common stock, whereby Coinbase began trading as a public company on or around April 14, 2021.[IPO]
For More information as well as to join this case please contact Atara Twersky, Esq. at [email protected] or [email protected]. Atara is Principal at Twersky Law Group and Of counsel at AF&T law firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries click here and to listen to Atara’s podcast with notable guests in the Pension fund Industry listen to Pension and Investments Podcast, on all matters related to your investment portfolio and more. For more information on Atara and her legal work connected to shareholder protection click here