SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Coinbase Global, Inc. (NASDAQ: COIN) securities now between April 14, 2021 and September 21, 2022, inclusive (the “Class Period”) have until this upcoming Monday, October 3, 2022 to seek appointment as lead plaintiff in the Coinbase class action lawsuit, which charges Coinbase as well as certain of its top executive officers with violations of the Securities Exchange Act of 1934. The first-filed complaint is captioned Patel v. Coinbase Global, Inc., No. 22-cv-04915 (D.N.J.). A subsequently filed complaint is captioned Laffoon v. Coinbase Global, Inc., No. 22-cv-05744 (D.N.J.).
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CASE ALLEGATIONS: The Coinbase class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Coinbase custodially held crypto assets on behalf of its customers, which assets Coinbase knew or recklessly disregarded could qualify as the property of a bankruptcy estate, making those assets potentially subject to bankruptcy proceedings in which Coinbase’s customers would be treated as Coinbase’s general unsecured creditors; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the U.S. Securities and Exchange Commission (“SEC”); and (iii) Coinbase had plans to, and did in fact, engage in proprietary trading of crypto assets.
On May 10, 2022, Coinbase disclosed that: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.” Following this disclosure, the price of Coinbase Class A common stock fell by more than 26%.
Then, on July 25, 2022, Bloomberg reported that Coinbase is facing an SEC probe into whether it improperly let Americans trade digital assets that should have been registered as securities. On this news, the price of Coinbase Class A common stock fell by an additional 21%.
Finally, on September 22, 2022, The Wall Street Journal reported that Coinbase had created a business group—Coinbase Risk Solutions—in July 2021 “to generate profit, in part, by using the [C]ompany’s cash to trade and ‘stake,’ or lock up, cryptocurrencies,” a practice that sources at the Company characterized as “‘proprietary’ trading.” According to The Wall Street Journal, the group completed a $100 million investment in 2022 to “profit in cryptocurrency markets,” and the transaction generated an “eagerness to make additional such transactions” within Coinbase. On this news, the price of Coinbase Class A common stock declined, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Coinbase securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Coinbase class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Coinbase class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Coinbase class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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