US-based cryptocurrency exchange Coinbase has come under legal pressure following a class-action lawsuit filed by investors after the company’s shares plunged in value.
Coinbase Class Action Lawsuit Filed: Shareholders Blame Company for Data Breach and Concealment
The lawsuit alleges the company failed to timely disclose the user data breach and concealed from investors the breach of a settlement with a U.K. regulator.
In a lawsuit filed in the Pennsylvania Eastern District Court by plaintiff investor Brady Nessler, it was stated that Coinbase shareholders “suffered significant damages and losses.”
The lawsuit alleges that Coinbase failed to timely disclose to investors that its UK subsidiary, CB Payments, had breached an agreement it made with the UK Financial Conduct Authority (FCA) in 2020. It also highlights that the company only publicly disclosed a serious data breach that occurred in December 2024 on May 15, 2025.
According to Coinbase, cyber attackers bribed some employees and stole users’ personal data. Following this development, the company’s stock value fell by 7.2% to $244.
Coinbase estimates that the cost of fixing the breach and potential refunds to customers could be between $180 million and $400 million.
The lawsuit names Coinbase CEO Brian Armstrong and CFO Alesia Haas as individual defendants and seeks damages for losses incurred by investors who purchased Coinbase stock between April 14, 2021, and May 14, 2025.
After falling following the disclosure of the data breach, Coinbase shares recovered as of May 23, closing at $263.16.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-exchange-coinbase-lawsuit-shock-shareholders-filed-a-lawsuit-against-the-company-heres-why/