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BOSTON, Aug. 30, 2021 (GLOBE NEWSWIRE) -- Block & Leviton announces that a class action lawsuit has been filed against Coinbase Global Inc. (NASDAQ: COIN) and certain of its officers for securities fraud. Investors who purchased shares on or after April 14, 2021 and lost money are encouraged to contact the firm to learn more about how they might recover those losses. For more details, visit https://www.blockleviton.com/cases/coin.
What is this all about?
Coinbase “powers the cryptoeconomy” through its “trusted platform” used to send and receive Bitcoin and other digital assets built using blockchain technology. The platform is used throughout the world, with approximately 43 million retail users, 7,000 institutional users, and 115,000 ecosystem partners in over 100 countries.
On April 14, 2021, Coinbase filed its Registration Statement and related prospectus with the SEC in connection with its direct offering of over 114 million shares of class A common stock. In its Registration Statement, the Company represented that its operations would continue to be financed with operating cash flow and the sale of convertible preferred stock – i.e. it did not need to raise capital through the direct offering to fund operations.
Little more than a month later, Coinbase conceded the need to raise capital and revealed performance issues that prevented users’ ability to trade cryptocurrencies. On May 17, 2021, the Company announced plans to raise about $1.25 billion via a convertible bond sale. And on May 19, 2021, the Company revealed technical problems, including delays “due to network congestion” affecting those who want to get their money out.
On this news, Coinbase’s share price fell $23.44 per share, or nearly 10%, closing at $224.80 per share on May 19, 2021. Shares today trade as low as $208.00 per share, far below the April 14, 2021 opening price of $381.00.
Who is eligible?
Anyone who purchased Coinbase class A common shares on or after April 14, 2021 is eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What should you do next?
The deadline to seek appointment as lead plaintiff is September 20, 2021. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Why should you contact Block & Leviton?
Many law firms have issued releases about this matter; most of those firms do not actually litigate securities class actions. Block & Leviton is a law firm that actually litigates cases. We are dedicated to obtaining significant recoveries on behalf of defrauded investors through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, or call (617) 398-5600 or email email@example.com with any questions.
This notice may constitute attorney advertising.