The largest U.S. cryptocurrency market is facing a new round of legal challenges from a pair of lawsuits.
Coinbase is facing two class-action lawsuits after a U.S. Securities and Exchange Commission (SEC) scrutiny of the exchange’s unregistered securities, as a former product manager pleaded not guilty to insider trading in federal court.
in the first casethe law firm Bragar Eagel & Squire sued Coinbase Global in the U.S. District Court for the District of New Jersey on behalf of investors who purchased Nasdaq stock COIN between April 14, 2021 and July 26, 2022.
Two questions are two examples of security prices falling after bad news for Coinbase:
- In the event that Coinbase declared bankruptcy, digital assets held by customers on the company’s exchange “may be subject to insolvency proceedings, and these customers may be considered our general unsecured creditors,” it was disclosed on May 10. COIN continued to drop by 26.4%.
- The U.S. Securities and Exchange Commission (SEC) is investigating Coinbase for allegedly selling unregistered securities on its marketplace, according to a July 25 report. The next day, the value of COIN stock fell by more than 21%.
More information on Bragar Eagel & Squire complaints can be found here.
second type of action litigation Pomerantz LLP also filed a lawsuit against Coinbase Global and some of its officials in the global U.S. District Court for the District of New Jersey.
The company is “seeking to recover damages and seek remedies for defendants’ violations of federal securities laws” [applicable under] Securities Exchange Act of 1934. “
The Pomerantz lawsuit includes almost verbatim allegations against Coinbase’s bankruptcy terms and an ongoing SEC investigation.
“The complaint alleges that throughout the class action period, the defendants made materially false and misleading statements about the company’s business, operations and compliance policies.
…the above actions expose companies to increased risks of regulatory and government scrutiny and enforcement actions.
…the company’s public statements were materially false and misleading at all relevant times. “
Case details will be added to Pomerantz soon website.
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