Coinbase Customers Claim Illegal Securities Sales, File Class Action Lawsuit
Portfolio Pulse from Murtuza Merchant
Six Coinbase customers have filed a class action lawsuit against Coinbase Global, Inc. (NASDAQ:COIN), accusing it of selling unregistered securities and violating state and federal securities laws. The lawsuit, filed in the Northern District of California, also names CEO Brian Armstrong and several subsidiaries as defendants. The plaintiffs allege Coinbase misled customers about its regulatory compliance, lacking necessary broker-dealer registrations.
May 06, 2024 | 12:08 pm
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Coinbase faces a class action lawsuit for allegedly selling unregistered securities and misleading customers about its regulatory compliance.
The lawsuit directly targets Coinbase's business practices, accusing it of operating illegally by selling unregistered securities and misleading customers about its regulatory status. Such legal challenges can negatively impact investor confidence and potentially lead to financial penalties or operational restrictions, affecting the stock price negatively in the short term.
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