Three new class action lawsuits have been filed against COINBASE and its executives on Thursday after the company reaches the Supreme Court to settle two pending class action lawsuits related to scam and Dogecoin sweepstakes, respectively.
The latest class action lawsuits accuse Coinbase of false and misleading statements, non-disclosure of new bankruptcy risk terms and conditions, violating securities law, and failing to communicate regulatory and governmental scrutiny and enforcement action.
Coinbase Faces Three Class Action Lawsuits
Troubles for crypto exchange Coinbase don’t seem to end soon, as three new class action lawsuits have been filed in the U.S. District Court for the District of New Jersey on August 4. The class action lawsuits have been brought by law firms Bragar Eagel & Squire PC, Robbins Geller Rudman & Dowd LLP, and Pomerantz LLP.
The class action lawsuits represent “all persons and entities who purchased or otherwise acquired Coinbase securities” between April 14, 2021 and July 26, 2022. Moreover, the last date for plaintiff addition is October 13. In fact, the class action by Robbins Geller Rudman & Dowd already has a plaintiff, with the case filed as Patel v. Coinbase Global, Inc.
Coinbase and its executives are accused of making false and misleading statements regarding the company’s operations and compliance policies. Also, failing to communicate new bankruptcy risks disclosure, which makes customers’ custodially held crypto assets subject to bankruptcy proceedings and customers would be treated as unsecured creditors.
