NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) in the United States District Court for the District of New Jersey on behalf of investors who purchased Coinbase common stock between April 14, 2021 and July 26, 2022, inclusive (the “Class Period”).
The Complaint allege that Defendants failed to disclose that: (1) 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 the Company’s general unsecured creditors; (2) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the SEC; and (3) the foregoing conduct subjected the Company to a heightened risk of regulatory and governmental scrutiny and enforcement action.
On May 10, 2022, in its quarterly report for the first quarter of 2022, released after the markets closed, 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 Company’s stock price fell $19.27 per share to close at $53.72 per share on May 11, 2022.
Investors who purchased or otherwise acquired shares of Coinbase should contact the Firm prior to the October 3, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
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