Law Firm Pomerantz Announces Class Action Filing

NEW YORK, Aug. 04, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) and certain of its officers. The class action, filed in the United States District Court for the District of New Jersey and registered as 22-cv-04915, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired Coinbase securities between April 14, 2021 and July 26, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by the Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and some of its senior leaders.

If you are a shareholder who purchased or otherwise acquired Coinbase securities during the class period, you have until October 3, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by e-mail are encouraged to include their mailing address, phone number and number of shares purchased.

[Click here for information about joining the class action]

Coinbase provides financial infrastructure and technology products and services for the cryptocurrency economy (or “cryptoeconomy”) in the United States and around the world. The company allegedly offers the cryptoeconomy’s leading financial account for retailers, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technology and services that enable ecosystem partners to create crypto-based applications and securely accept crypto assets as payment. .

The Complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Coinbase held crypto assets in custody on behalf of its customers, assets that Coinbase knew or recklessly did not know were could be considered the property of a bankruptcy, making the assets potentially subject to bankruptcy proceedings in which Coinbase customers would be treated as general unsecured creditors of the Company; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or carelessly ignored should have been registered as securities with the SEC; (iii) the foregoing conduct has subjected the Company to increased risk of regulatory and governmental oversight and enforcement action; and (iv) as a result, the Company’s public statements were materially false and misleading at all material times.

On May 10, 2022, in its quarterly report for the first quarter of 2022, released after market close, Coinbase disclosed that: “[B]Since crypto assets held in custody may be considered the property of a bankruptcy estate, in the event of bankruptcy, crypto assets held by us in custody on behalf of our clients could be subject to bankruptcy proceedings. bankruptcy and these customers could be treated as our general unsecured creditors.

Following this disclosure, the price of Coinbase’s Class A common stock fell $19.27 per share, or 26.4%, to close at $53.72 per share on May 11, 2022.

In a subsequent tweet commenting on the disclosure, Coinbase CEO, Defendant Brian Armstrong said, “We should have updated our retail terms sooner, and we didn’t proactively communicate when this happened. risk disclosure has been added. My sincerest apologies and a great learning moment for us as we make future changes.

On May 12, 2022, Professor Adam J. Levitin, Professor of Law at Georgetown University Law Center, published a draft of an article titled “Not Your Keys, Not Your Coins: Unpriced Credit Risk in Cryptocurrency,” which is slated to appear in the Texas Law Reviewwhich argues that in the event of a cryptocurrency exchange filing for bankruptcy, bankruptcy courts will likely consider the deposited cryptocurrency holdings to be the property of the bankrupt exchange, rather than the property of his clients.

Then, on July 25, 2022, after the markets close, Bloomberg reported that Coinbase was facing an SEC investigation into whether it improperly let Americans trade digital assets that should have been registered as securities.

On this news, the price of Coinbase’s Class A common stock fell $14.14 per share, or 21.08%, to close at $52.93 per share on July 26, 2022.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

Comments are closed.