SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that purchasers of Coinbase Global, Inc. (NASDAQ: COIN) Class A common stock pursuant and/or traceable to Coinbase’s offering materials for the resale of up to 114,850,769 shares of its Class A common stock, whereby Coinbase began trading as a public company on or around April 14, 2021 (the “Offering”) have until September 20, 2021 to seek appointment as lead plaintiff in the Coinbase class action lawsuit. The Coinbase class action lawsuit charges Coinbase, certain of its top executives, and others with violations of the Securities Act of 1933. The Coinbase class action lawsuit (Ramsey v. Coinbase Global, Inc., No. 21-cv-05634) was commenced on July 22, 2021 in the Northern District of California and is assigned to Judge Vince Chhabria.
If you wish to serve as lead plaintiff of the Coinbase class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Coinbase class action lawsuit must be filed with the court no later than September 20, 2021.
CASE ALLEGATIONS: The Coinbase class action lawsuit alleges that Coinbase’s offering materials were false and misleading and omitted to state that, at the time of the Offering: (i) Coinbase required a sizeable cash injection; (ii) Coinbase’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as Coinbase scaled its services to a larger user base; and (iii) as a result, defendants’ positive statements about Coinbase’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On May 17, 2021, Coinbase revealed plans to raise about $1.25 billion via a convertible bond sale (the “Bond Offering”). Forbes.com was quick to note the conflict between the offering materials and Coinbase’s Bond Offering in its article entitled “Why is Coinbase Stock Trending Lower?” stating in relevant part “[i]nvestors were also likely surprised by the timing of the issue, considering that Coinbase just went public in mid-April via a direct listing (which doesn’t involve issuing new shares or raising capital), signaling that it didn’t require cash.” On this news, Coinbase’s stock price declined nearly 4%.
Then, on May 19, 2021, as the value of cryptocurrencies fell, Coinbase revealed technical problems experienced by users on its platform, including “delays . . . due to network congestion” affecting those who want to get their money out. On this news, Coinbase’s stock price declined nearly 6%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Coinbase Class A common stock pursuant and/or traceable to Coinbase’s offering materials issued in connection with the Offering to seek appointment as lead plaintiff in the Coinbase class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Coinbase class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Coinbase class action lawsuit. An investor’s ability to share in any potential future recovery of the Coinbase class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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