Class Action Lawsuit Filed Against Coinbase Due to Stock Dip Tied to Data and Regulatory Violations

Coinbase Faces Class-Action Lawsuit Over Securities Law Violations and Stock Price Drop

Crypto exchange Coinbase is facing a class-action lawsuit alleging violations of securities laws. The complaint, filed on May 27 in the Eastern District of Pennsylvania, accuses the company of making false and misleading statements regarding its subsidiary, CB Payments Limited (CBPL).

Investor Brady Nessler, on behalf of anyone who purchased publicly traded Coinbase securities between April 14, 2021, and May 14, 2025, is leading the lawsuit. Nessler's legal team contends that Coinbase falsely represented the subsidiary, causing Coinbase's stock price to plummet by $13.52 per share, or 5.52%, following the disclosure of a £3.5 million ($4.5 million) fine imposed by the United Kingdom's Financial Conduct Authority (FCA) on CBPL for onboarding high-risk customers.

The lawsuit also points to a recent data breach at Coinbase, in which criminals allegedly bribed overseas customer support agents to gain access to customers' information. A filing with the Maine Attorney General's Office indicates that the breach impacted almost 69,000 people.

Coinbase has disclosed that the stolen information includes names, addresses, phone numbers, email addresses, masked social security numbers, bank account information, government-issued ID images, account data, and limited corporate data. The exchange learned of the incident after receiving an email demanding a $20 million Bitcoin ransom in exchange for not releasing the information. Coinbase refused to comply and reports it will incur remediation costs and customer reimbursements totaling $180 million to $400 million.

Coinbase's stock dropped by more than 7% on the day the breach was announced but later recuperated that week. In addition to the initial defendants, Coinbase CEO Brian Armstrong and Chief Financial Officer Alesia Haas are also named in the suit.

Nessler seeks damages for class members and further relief as appropriate.

Meanwhile, Coinbase has been undergoing regulatory scrutiny since June 2023, primarily involving the Securities and Exchange Commission and ten states, who have accused the company of offering unregistered securities via its staking services. Despite some changes in SEC actions, several states continue their legal challenges against the company.

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Class Action Lawsuit Filed Against Coinbase Due to Stock Dip Tied to Data and Regulatory Violations