Coinbase has been hit by another class action while trying to get a respite from the Supreme Court
New lawsuits are piling up against US cryptocurrency firm Coinbase shortly after revelations of an ongoing investigation by a securities regulator.
as such for every Bragar Eagel & Squire, PC, Shareholder Equity Law Firm, New Class Action Suit Against Coinbase Global Inc. In United States District Court in New Jersey on behalf of holders who purchased or acquired Coinbase securities between April 14, 2021, and July 26, 2022.
Accusing the exchange of making “false and misleading” statements
The company opened a petition to investors through October 3, 2022, saying: “The complaint alleges that throughout the duration of the lawsuit, the defendants made false and misleading statements regarding the company’s business, operations, and compliance policies.”
The lawsuit circles as Coinbase revealed that its clients will be treated as unsecured creditors in the event of bankruptcy proceedings in the platform’s Q1 report for 2022. While shares plunged on the open market the next day, Coinbase CEO, Defendant Brian Armstrong said They did not acknowledge it was a late disclosure shortly after in May.
Once again, a Bloomberg report has led to the Securities and Exchange Commission (SEC) looking into Coinbase to allow Americans to trade unregistered securities, diluting the price of common shares on the next open market, burning shareholders’ pockets. Meanwhile, Pomerantz LLP has also launched a class action lawsuit against Coinbase and some of its officers, according to another Release.
New legal problems after approaching SC
Notably, the new legal issue comes a day after Coinbase Global asked the US Supreme Court to put an end to the lawsuit while pursuing an appeal to arbitrate out-of-court cases. The platform also called for emergency intervention with the filings, saying it would suffer “irreparable harm” if the lawsuits were allowed to continue.
The backlog of legal troubles came when Senator Cynthia Loomis’s office confirmed that Coinbase is among the 40 platforms being investigated. While that happens, Coinbase is about to release its second-quarter earnings after announcing a massive partnership with BlackRock. While the deal positively impacted the price of COIN’s stock, the regulator can continue to pull the Nasdaq listing.
Against the backdrop of weak market, Zacks Equity Research Expect That Coinbase will report a “year on year decline in earnings from lower revenue” for the quarter ending June 2022.
Zacks estimates revenue will be close to $877.32 million, down 60.6% from last year’s quarter. Since the listing, Coinbase has fallen more than 60% with Ark Investment Management dumping 1.41 million shares from three of its funds last week.
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