BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces an investigation on behalf of Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) investors concerning the Company’s possible violations of federal securities laws.
Coinbase is the largest cryptocurrency exchange in the U.S. In April 2021, Coinbase became a public company after registered the resale of nearly 114.8 million shares of its Class A common stock by registered shareholders. The offering materials stated that Coinbase is “powered by a robust backend technology system” and that it had “grown quickly and in a capital-efficient manner since [its] founding.”
On May 17, 2021, Coinbase announced a $1.25 billion convertible bond sale. Forbes.com noted that “[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 fell $9.24, or 3.7%, to close at $239.00 per share on May 18, 2021, thereby injuring investors.
Then, on May 19, 2021, Coinbase announced technical problems, including “delays…due to network congestion” affecting those who wanted to withdraw their money.
On this news, Coinbase’s stock price fell $14.20, or 6%, to close at $224.80 per share on May 19, 2021, thereby injuring investors further.
If you purchased Coinbase Class A common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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