Crypto giant Coinbase faces a new lawsuit. An investor alleges significant losses from the company’s stock drop, linking the decline to recent disclosures about a data breach and past regulatory issues.
Coinbase recently revealed a data breach stemming from bribed support staff, potentially costing up to $400 million. Separately, its UK unit was fined millions by a regulator in July 2024 for violating an agreement regarding high-risk customer onboarding, which the company had made voluntarily in 2020.
The proposed class action, filed May 22 by investor Brady Nessler in Pennsylvania, claims Coinbase’s stock price fell sharply following these revelations. The suit argues shareholders suffered losses due to this precipitous market value decline after buying shares between April 2021 and May 2025.
Nessler’s complaint specifically ties a 7.2% share price drop on May 15 to the data breach disclosure. It also alleges the regulatory fine in July 2024 caused a more than 5% fall, arguing Coinbase failed to disclose this earlier, artificially inflating shares when they first listed.
The lawsuit seeks damages and demands a jury trial. It names Coinbase CEO Brian Armstrong and CFO Alesia Haas as defendants alongside the company, claiming the investor would not have purchased stock at the allegedly inflated prices had the regulatory violation been disclosed.
Photo: Coinbase by Ivan Radic licensed under CC BY 2.0
