Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities who purchased or otherwise acquired Coinbase Global, Inc. (NASDAQ: COIN) securities between April 14, 2021 and July 25, 2024. The Company purports to provide a trusted platform that serves as a compliant gateway to the onchain economy and enables customers to engage in a wide variety of activities, including discovering, trading, staking, storing, spending, earning, and using their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Coinbase Global, Inc. (COIN) Misled Investors Regarding its Engagement with High-Risk Customers
According to the complaint, during the class period, defendants failed to disclose that: (1) in 2020, after investigation, the United Kingdom’s Financial Conduct Authority (“FCA”) had deemed efforts by the Company’s British unit, CB Payments Limited (“CBPL”), to prevent criminals from using its platform, to be inadequate; (2) as a result, the FCA reached an agreement with CBPL, which put requirements in place that were designed to prevent high risk customers from using CBPL’s platform; (3) CBPL then breached that agreement, which resulted in 13,416 high risk individuals receiving services; (4) the foregoing resulted in an undisclosed heightened regulatory risk; and (5) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On July 25, 2024, the FCA published a press release entitled “FCA takes first enforcement action against firm enabling cryptoasset trading,” which stated that “CB Payments Limited (CBPL) has been fined £3,503,546 by the Financial Conduct Authority (FCA) for repeatedly breaching a requirement that prevented the firm from offering services to high-risk customers.” The same day, Reuters published an article entitled "Coinbase UK unit fined for breaching financial crime requirements.”
On this news, the price of Coinbase’s common stock fell by $13.52 per share, or 5.52%, to close at $231.52 on July 25, 2024.
What Now: You may be eligible to participate in the class action against Coinbase Global, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by November 12, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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