Coinbase hits another class-action lawsuit while trying to get respite from Supreme Court
New lawsuits against U.S.-based cryptocurrency firm Coinbase continue to mount shortly after the securities regulator’s ongoing investigation was revealed.
as Every Bragar Eagel & Squire, PC, a shareholder rights law firm, filed a new class action lawsuit against Coinbase Global Inc. in the U.S. District Court of New Jersey on behalf of holders of Coinbase securities purchased or acquired during April 14, 2021, and July 26, 2022.
Exchange accused of making ‘false and misleading’ statements
The company has filed a petition with investors by October 3, 2022, saying “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 lawsuit revolves around Coinbase revealing in the platform’s Q1 2022 report that its customers would be considered unsecured creditors in the event of bankruptcy proceedings. While the stock opened lower the next day, Coinbase’s CEO, defendant Brian Armstrong, did admit that this was a delayed disclosure shortly after May.
Bloomberg reports that the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase allows Americans to trade in unregistered securities, further denting the price of common stock in the next open market and burning shareholders’ pockets.Meanwhile, Pomerantz LLP also filed a lawsuit against Coinbase and some of its officials under a recent class-action lawsuit. release.
New legal issues after approaching SC
Notably, the new legal issue comes a day after Coinbase Global asked the U.S. Supreme Court to stop the lawsuit while seeking an appeal to arbitrate the already filed case out of court. The platform also called for urgent intervention in the filing, saying it would suffer “irreparable harm” if the lawsuit was allowed to proceed.
The pile of legal issues came when Senator Cynthia Lummis’ office reportedly confirmed that Coinbase was one of 40 platforms under investigation. While this is happening, Coinbase is about to release its second-quarter earnings after announcing a massive partnership with BlackRock. While the deal has had a positive impact on the price of COIN stock, the hustle and bustle of regulators can continue to pull a Nasdaq listing.
Zacks Equity Research Amid Market Weakness predict Coinbase will report a “year-over-year revenue decline” for the quarter ending June 2022.
The Zacks Estimate for revenue will be close to $877.32 million, down 60.6% from the year-ago quarter. Coinbase has fallen more than 60 percent since going public, and Ark Investment Management sold more than 1.41 million shares from its three funds last week.
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