{"id":10038,"date":"2021-07-25T16:54:10","date_gmt":"2021-07-25T16:54:10","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/coinbase-executives-investors-hit-with-lawsuit-over-nasdaq-listing\/"},"modified":"2021-07-25T16:54:10","modified_gmt":"2021-07-25T16:54:10","slug":"coinbase-executives-investors-hit-with-lawsuit-over-nasdaq-listing","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/coinbase-executives-investors-hit-with-lawsuit-over-nasdaq-listing\/","title":{"rendered":"Coinbase, Executives, Investors Hit With Lawsuit Over Nasdaq Listing"},"content":{"rendered":"

A class-action lawsuit has been filed against cryptocurrency exchange Coinbase, its executives, and investors over the company\u2019s direct listing on Nasdaq. \u201cAccording to the complaint, the registration statement and prospectus used to effectuate the company\u2019s offering were false and misleading,\u201d the lawsuit alleges.<\/strong><\/p>\n

Class Action Lawsuit Against Coinbase<\/h2>\n

Scott+Scott Attorneys at Law LLP announced Friday that it has filed a securities class action lawsuit against Coinbase Global Inc. (NASDAQ: COIN), with Donald Ramsey as the lead plaintiff.
\nThe lawsuit also names several Coinbase directors and officers, including CEO Brian Armstrong, as defendants. Other defendants include venture capital firms and investors that benefited from Coinbase\u2019s direct offering<\/a>, including Marc Andreessen, Fred Ehrsam, Fred Wilson, AH Capital Management, Tiger Global Management, Union Square Ventures, and Viserion Investment.
\nCoinbase is the largest cryptocurrency exchange in the U.S. According to its website, the company currently has approximately 56 million verified users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries.
\nThe company went public<\/a> on April 14 through a direct listing on Nasdaq, making available 114,850,769 shares of its Class A common stock to the general public. Coinbase\u2019s shares began trading on the Nasdaq exchange at $381 per share.
\nThe law firm explained:<\/p>\n

According to the complaint, the registration statement and prospectus used to effectuate the company\u2019s offering were false and misleading.<\/p>\n

Moreover, Coinbase allegedly \u201comitted to state that, at the time of the offering,\u201d it \u201crequired a sizeable cash injection\u201d and its \u201cplatform was susceptible to service-level disruptions, which were increasingly likely to occur as the company scaled its services to a larger user base.\u201d In addition, the lawsuit claims that \u201cas a result of the foregoing, the positive statements about the company\u2019s business, operations and prospects were materially misleading and\/or lacked a reasonable basis.\u201d<\/p>\n

Stock chart of Coinbase Global (NASDAQ: COIN) <\/p>\n

The lawsuit further states:<\/p>\n

As the truth about the company\u2019s need to raise cash and its platform\u2019s limitations reached the market, the value of Coinbase\u2019s shares declined dramatically.<\/p>\n

What do you think about the lawsuit against Coinbase, its executives, and investors? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nExchanges, Brian Armstrong, brian armstrong sued, Class Action Lawsuit, Coinbase, coinbase exchange, coinbase lawsuit, coinbase sued, Direct listing, IPO, Lawsuit, Nasdaq Listing, Public Listing<\/p>\n","protected":false},"excerpt":{"rendered":"

A class-action lawsuit has been filed against cryptocurrency exchange Coinbase, its executives, and investors over the company\u2019s direct listing on Nasdaq. \u201cAccording to the complaint, the registration statement and prospectus used to effectuate the company\u2019s offering were false and misleading,\u201d the lawsuit alleges. Class Action Lawsuit Against Coinbase Scott+Scott Attorneys at Law LLP announced Friday…<\/p>\n","protected":false},"author":0,"featured_media":10039,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10038"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10038"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10039"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}