Coinbase Caught in Another Class Action Lawsuit While Trying to Get Relief from the Supreme Court
New lawsuits against US crypto company Coinbase are coming soon after an ongoing investigation by the securities regulator was revealed.
Coinbase Global Inc. in the United States District Court of New Jersey on behalf of holders who purchased or acquired Coinbase Securities between April 14, 2021, according to stockholder rights law firm, Bragger Eagle & Square, PC. , and July 26, 2022.
Exchange accused of making ‘false and misleading’ statements
The firm has opened the petition to investors by October 3, 2022, stating, “The complaint alleges that throughout the class period, the Respondents made materially false and misleading statements about the Company’s business, operations and compliance policies.” made statements.”
The lawsuit was filed around the time Coinbase said the platform’s Q1 report for 2022 would treat its customers as unsecured creditors in case of bankruptcy proceedings. While the stock fell in the next day’s market, respondent Brian Armstrong, the chief executive officer of Coinbase, admitted that this was a delayed disclosure shortly after the month of May.
Once again, Bloomberg’s report that the Securities and Exchange Commission (SEC) is looking to Coinbase to allow Americans to trade unregistered securities further weakened the price of common shares in the next market, pocketing shareholders. is burning. Meanwhile, Pomerantz LLP has also launched a class action lawsuit against Coinbase and some of its executives, according to a recent release.
Fresh legal trouble after approaching SC
Notably, the fresh legal trouble comes a day after Coinbase Global requested the US Supreme Court to stay the lawsuit while it appeals to arbitrate cases filed out-of-court. The forum had also called for emergency intervention in the filing, saying it would cause “irreparable damage” if the lawsuits were allowed to proceed.
The piling legal trouble comes after Senator Cynthia Loomis’ office reportedly confirmed that Coinbase is among 40 platforms being investigated. While it does, Coinbase is on the verge of releasing its earnings for the second quarter after announcing a massive partnership with BlackRock. While the deal positively impacted the price of COIN shares, the regulator could pull the haphazard Nasdaq listing.
On the back of a weak market, Jax Equity Research predicts that Coinbase will post a “year-on-year decline in earnings on lower revenues” for the quarter ending June 2022.
Jax estimates revenue to be closer to $877.32 million, down 60.6% from the year-ago quarter. Coinbase is down more than 60% since listing, with Arch Investment Management dumping more than 1.41 million shares from three of its funds last week.
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