Coinbase faces another data breach lawsuit claiming stock drop damages ⚖️
Coinbase and two executives are facing a proposed class-action lawsuit following a data breach and subsequent stock price drop. The breach incident and an alleged violation of an agreement with the UK's Financial Conduct Authority (FCA) prompted the legal action, resulting in significant losses for shareholders.
Investor Brady Nessler claims the breach and the non-disclosure of the FCA agreement led to a "precipitous decline" in Coinbase's stock value. Nessler's lawsuit, filed on May 22 in Pennsylvania, describes the incident as part of a series of class-action lawsuits against Coinbase.
The crypto exchange had disclosed a potential financial impact of up to $400 million due to a $20 million extortion attempt by cybercriminals. The incident saw some customer support agents compromised and a limited amount of user data stolen.
Nessler further alleges that Coinbase's UK arm was fined $4.5 million in July 2024 for onboarding high-risk customers in violation of a 2020 agreement with the FCA, negatively impacting its stock price.
Nessler claims she would not have purchased Coinbase shares had the regulatory breach been disclosed at the time of its public listing on Nasdaq in April 2021. The lawsuit seeks damages on behalf of investors who bought shares between April 2021 and May 2025.
Coinbase's CEO Brian Armstrong and CFO Alesia Haas are also named defendants, and the case demands a jury trial. Coinbase has not responded to the lawsuit.
