Coinbase Global Inc.
Coinbase Global Inc. (“Coinbase” or the “Company”) is the largest cryptocurrency exchange in the United States. As of the Company’s offering, the Coinbase platform was used by approximately 43 million retail users, 7,00 institutions, and 115,000 ecosystem partners in over 100 countries.
On April 14, 2021, Coinbase went public through the Offering, making available 114,850,769 shares of its Class A common stock to the general public. Coinbase shares began trading on the NASDAQ at $381.00 per share.
As the truth about the Company’s need to raise cash and its platform’s limitations reached the market, the value of Coinbase’s shares declined dramatically. By the commencement of the action, Coinbase’s shares traded as low as $208.00 per share, or over 45% below the April 14, 2021 opening price of $381.00 per share.
A securities class action has been filed against Coinbase on behalf of shareholders that purchased Coinbase shares in connection with the Company’s IPO on April 14, 2021. This case has been filed in the U.S. District Court for the Northern District of California.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Coinbase required a sizeable cash injection; (2) Coinbase’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base; and (3) as a result of the foregoing, the positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
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