Coinbase and its two executives are facing another proposed class action lawsuit after the cryptocurrency exchange's stock price dropped following the disclosure of a user data breach earlier this month, as well as allegedly failing to disclose violations of an agreement with UK regulators.
Coinbase investor Brady Nessler filed a lawsuit in Pennsylvania federal court on May 22, stating that the data breach incident and the alleged violation of the agreement with the Financial Conduct Authority (FCA) in the UK led to a "sharp decline in the market value of the company's common stock," causing shareholders to suffer "significant losses and damages."
On May 15, Coinbase announced that after suffering a $20 million ransomware attack four days prior, its loss bill could reach up to $400 million, with several customer support personnel bribed to access internal systems and steal limited user account data.
Nessler claims that due to the disclosure incident, Coinbase (COIN) stock fell by 7.2%, closing at $244 on May 15. However, according to Google Finance, the stock did rebound, rising 9% to $266 by the close on May 16.
Coinbase shares fell more than 3% to $263 on May 23, and dropped an additional $1.62 in after-hours trading. COIN has risen nearly 6% year-to-date.
Coinbase shares declined during trading on May 23. Source: Google Finance
In a series of recent class action lawsuits related to the incident, Nessler's lawsuit appears to be the first to claim damages due to the drop in Coinbase's stock price following the disclosure of the breach.
Within days of the data breach disclosure, the cryptocurrency exchange faced at least six lawsuits, all accusing it of mishandling and failing to protect user data.
The FCA imposed a $4.5 million fine on Coinbase's UK division in July 2024 for violating a voluntary agreement from 2020 that prevented the exchange from opening accounts for customers deemed high-risk by the regulator.
The FCA stated that Coinbase opened accounts for 13,416 customers considered high-risk by the regulator and provided them with cryptocurrency services.
Nessler pointed out in the lawsuit that this fine caused Coinbase's stock price to drop by more than 5%, closing at $231.52 on July 25, 2024.
Nessler also claimed that when the exchange first went public on Nasdaq in April 2021, Coinbase did not disclose its violation of this agreement, thus artificially inflating "the market price of the company's securities."
Nessler stated that if she had known about the breach of the agreement, she would not have purchased the stock at the "artificially inflated price."
Coinbase did not immediately respond to a request for comment.
This class action lawsuit is brought on behalf of anyone who purchased Coinbase stock between April 14, 2021, and May 14, 2025, seeking damages and a jury trial. Coinbase CEO Brian Armstrong and CFO Alesia Haas are also named as defendants.
Another lawsuit filed on May 13 in Illinois accuses Coinbase of failing to provide written notice to users regarding the collection, storage, or sharing of their biometric data, as well as the purposes and retention plans for that data.
Related: Adam Back leads $2.2 million funding round to help Swedish medical company allocate Bitcoin (BTC)
Original article: “Coinbase Faces Another Data Breach Lawsuit Over Stock Price Drop”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
