Coinbase has been hit by yet another class action lawsuit after the reveal of an underway investigation by the securities regulator. The stockholder rights law firm Bragar Eagel & Squire, P.C., has announced that it has taken a new lawsuit to hit Coinbase Global Inc. in the United States District Court.
Bragar Eagel & Squire, P.C. stated that throughout the Class Period, the defendants made significant false and misleading statements about the company's business, operations, and compliance policies.
The main lawsuit revolves around Coinbase’s disclosure in the platform’s Q1 2022 report that its customers would be treated as unsecured creditors in the event of an insolvency proceeding. Coinbase’s Chief Executive Officer, Defendant Brian Armstrong has admitted that it was a delayed disclosure.
“The Securities and Exchange Commission (SEC) is looking into Coinbase for allowing Americans to trade unregistered securities further weakening the price of the common shares in the next market open, burning the pockets of the shareholders. In the meantime, Pomerantz LLP has also set in motion a class action lawsuit against Coinbase and some of its officers as per a recent release.“ as reported by Bloomberg.
Coinbase has recorded a loss of over 60% with Ark Investment Management and dumped over 1.41 million shares recently. Bragar Eagel & Squire, P.C. have offered consumers who purchased or acquired Coinbase shares and needed more information to contact them with no cost and obligation.