On May 26, according to The Block, the cryptocurrency trading platform Coinbase has been hit with a class-action lawsuit by shareholders due to recent stock price declines. The lawsuit alleges that the trading platform failed to timely disclose a user data breach that occurred earlier this month and its violation of an agreement with a UK regulatory body.
Last Thursday, investor Brady Nessler filed a class-action lawsuit in the Eastern District of Pennsylvania, claiming that Coinbase shareholders "suffered significant losses and damages".
The lawsuit lists a long series of alleged "information disclosure omissions" by the company over the past few years. For example, the lawsuit claims that Coinbase failed to fully disclose that its UK subsidiary, CB Payments, violated an agreement signed with the UK Financial Conduct Authority (FCA) in 2020.
