A class-action lawsuit has been filed against cryptocurrency
exchange Coinbase, its executives, and investors over the company’s
direct listing on Nasdaq. “According to the complaint, the registration
statement and prospectus used to effectuate the company’s offering were
false and misleading,” the lawsuit alleges.
Class Action Lawsuit Against Coinbase
- 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. - The 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’s direct offering,
including Marc Andreessen, Fred Ehrsam, Fred Wilson, AH Capital
Management, Tiger Global Management, Union Square Ventures, and Viserion
Investment. - Coinbase 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. - The company went public
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’s shares began trading on the Nasdaq exchange at $381 per
share. - The law firm explained:
According to the complaint, the registration statement
and prospectus used to effectuate the company’s offering were false and
misleading.
- Moreover, Coinbase allegedly “omitted to state that, at the time of
the offering,” it “required a sizeable cash injection” and its “platform
was susceptible to service-level disruptions, which were increasingly
likely to occur as the company scaled its services to a larger user
base.” In addition, the lawsuit claims that “as a result of the
foregoing, the positive statements about the company’s business,
operations and prospects were materially misleading and/or lacked a
reasonable basis.”
- The lawsuit further states:
As the truth about the company’s need to raise cash and
its platform’s limitations reached the market, the value of Coinbase’s
shares declined dramatically.
source link : https://news.bitcoin.com/coinbase-executives-investors-hit-with-lawsuit-over-nasdaq-listing/
